EMRA decisions published in the Official Gazette

EMRA's decisions regarding the matter have been published in the Official Gazette.

Accordingly, regulations have been made regarding assets that can be accepted as collateral in the Market Operation Procedures and Principles (PUE).

In the decision, it is stated that in the process of calculating the Turkish Lira equivalents of collaterals, the CBRT foreign exchange buying rate announced at 15:30 on the business day preceding the day the calculation is to be made by the CBRT will be used for foreign currency cash collaterals and electronic letters of guarantee in foreign currency; the indicative prices published in the Official Gazette on the day the calculation is to be made by the CBRT will be used for government bonds and treasury bills; and the prices determined by the central clearing organization will be used for Eurobonds issued by the Ministry of Treasury and Finance.

Market participants may provide the collateral they are required to provide using only one or more of the assets that can be accepted as collateral as specified in the 1st paragraph. The provided collaterals may be partially or fully replaced with other assets accepted as collateral.

In the event that the market operator becomes aware of injunctions issued by legal authorities regarding the assets presented as collateral by a market participant, or other situations that eliminate the definitive collateral nature of the relevant assets, said assets will not be taken into account in the total collateral account of the relevant market participant.

Furthermore, a valuation coefficient will be applied to assets accepted as collateral other than cash Turkish Lira and electronic letters of guarantee in Turkish Lira, as well as to electronic letters of guarantee in foreign currency.

The valuation coefficient to be applied within the scope of this regulation will be determined by the market operator upon the proposal of the central clearing organization, taking into account the valuation coefficients applied in similar markets, and will be announced to the market participant via the Continuous Trading Platform (STP).

All costs related to collaterals will be covered by the relevant market participant.

On the other hand, temporary articles have been added to the PUE.

According to these articles, the daily transaction collateral to be collected until April 1, 2024, to ensure the completion of systemic developments by the market operator and the central clearing organization, will be provided only in cash in Turkish Lira.

Payments to be made to market participants and system users until April 1, 2024, to ensure the completion of systemic developments by the market operator and the central clearing organization, will be carried out according to the date and order of invoice notification.

AMENDMENT TO THE FUTURES NATURAL GAS MARKET OPERATION PROCEDURES AND PRINCIPLES

EMRA has also amended the Futures Natural Gas Market Operation Procedures and Principles in the Official Gazette.

Accordingly, for collateral checks to be performed 30 minutes before the start of each session, market participants will submit their electronic letters of guarantee to the market operator up to 60 minutes before the session start time, and other collaterals excluding electronic letters of guarantee to the central clearing organization by the collateral check time.

The market operator will notify the central clearing organization of the information regarding the amount of electronic letters of guarantee submitted to it up to 30 minutes before the electronic collateral check time, on a market participant basis, no later than 30 minutes before the session start time.

Temporary articles have also been added to the VGPUE.

Accordingly, it will be mandatory to convert existing letters of guarantee into electronic letters of guarantee by April 1, 2024; letters of guarantee that are not converted will not be taken into account in collateral calculations.

The decisions in question entered into force on the date of their publication.