Cash and asset settlement of transactions in the Stock Exchange, are bartered in the presence of the ISE Settlement and Custody Bank Inc. on the second work day following trade transaction in the Stock Exchange. Settlement and Custody Bank is a central custody institution in which settlement regarding the commitments about security delivery and their cost payments resulting from trade transactions in the Stock Exchange are carried out and securities that are purchased and sold in the ISE have to be preserved physically.
Customer Based Custody System:
It is established to ensure that equity investors follow their account balances which are at different banks and equity houses, in the presence of Settlement and Custody Bank. In this system, custody accounts which are formerly followed via code numbers in the presence of Settlement and Custody Bank have been transformed into accounts followed via investor name. This transformation has imposed an obligation for all our equity customers to present photocopy of their identity cards to Settlement and Custody Bank.
Opening of an account in the name of investor in the Settlement and Custody bank does not provide opportunities for the investors such as receiving assets from their accounts by applying to the Settlement and Custody Bank directly and transferring these assets to another account. Rights to make all kinds of transactions on these accounts in question are under the authorization and responsibility of equity houses in which the accounts exist.