On Nov. 4, TUR Cust wrote to brokerage firms on pledge agreements.
TUR Cust letter on the conversion of pledge agreements to assignment agreements.
Overview
TUR Cust members may use cash credit service to pledge securities and capital market instruments in their portfolios, clients' shares, to TUR Cust Bank as collateral for use.
To standardize the process changes are made to credit collateral transfer process.
From Dec. 15, 2024
Customer collateral pledged under pledge agreement regarding brokerage firm's credit risk will begin to be transferred under agreement, transferring ownership to TUR Cust.
From Nov. 5, 2024 until Dec. 15, 2024
Until the implementation date of the change, members must complete the following.
For each new customer with whom a broker has not previously worked under a pledge agreement, the broker must arrange both a pledge agreement/assignment agreement, enter both agreements into the Bank's system, and send originals to the Credits Team.
For existing customers with pledge agreements, to arrange assignment agreements, enter them into the system, and send the originals to the Credits Team.
Until the transition day on Dec. 15, 2024, assignment agreements will be tracked systematically, but transactions will continue based on pledge agreements.
After end-of-day process on Dec. 15, 2024, all pledge agreements in the system will be systematically canceled, and link created by pledge agreement for each customer's credit risk will be associated with the previously defined assignment agreements.
Until Dec. 15, 2024, it is important members to continue entering customer collateral under the pledge agreement to ensure their cash credit operations proceed smoothly and to adapt effectively to this change by following the aforementioned steps.
Customer Assignment Agreement Pre-Information Form and the Customer Assignment Agreement can be accessed under the "Membership" section in the "Cash Credit" area.
