Post-trade services provider SIX Securities Services signed a memorandum of understanding with both Takasbank and MKK to provide international clearing, settlement and custody services.
The clearing and settlement arms of SIX Securities Services, SIX x-clear and SIX SIS, both signed an MoU with Takasbank and MKK, Turkey’s domestic providers for post trade services, to establish international post trade services for Turkey.
Through the agreement, SIX Securities Services will play the roles of international CCP for the Turkish market and global custodian for Takasbank. In return, Takasbank will become a full-service provider for the Turkish market via a direct CSD link with SIX SIS.
The agreement also covers the exploration of joint business opportunities – especially in the area of Islamic finance products and access to the respective markets.
The MoU, signed in April in Zurich is the result of two years of discussion and collaboration between all four institutions. First benefits of this cooperation are expected as early as 2013.
Tomas Kindler, head of Clearing Relations, said: “There is work to be done, but the result of two years of discussions means this MOu is not to be taken lightly. There’s a more tangible element to the clearing and CSD discussions, and in terms of Islamic finance products, it is more of an ongoing visionary product. Turkey is a fairly large market already, and is preparing to open up further to international investors as well as creating a gateway into Islamic products such as Sukuks. For us, it’s a completely new asset class. As a Western provider, you need to have a respected partner in an Islamic bank, and this is what we have achieved with Takasbank.”
Urs Wieland, CEO at SIX x-clear added: ‘We are excited by the prospect of working with the Turkish market as a whole. Now we are focusing on implementation and moving quickly to bring this comprehensive offering to our mutual customers. For SIX Securities Services, this is just the beginning of what we believe to be enormous potential in the region."
