Funding was provided to brokerage houses by Takasbank in order to close leveraged positions that caused a sharp decline in Borsa Istanbul in the middle of the month and led to a succession of big bank shares.
According to the statement made to the Public Disclosure Platform by Sabah Central Registry Agency, shares with a nominal value of 242.7 million TL, corresponding to 13.05 percent of Şekerbank’s capital, and shares with a nominal value of 202.1 million TL, corresponding to 7.22 percent of TSKB’s capital, were delivered to Takasbank yesterday. .
Following this, in the statement made to the Public Disclosure Platform by Takasbank, it was stated that the shares were taken into custody accounts of Takasbank due to the funding provided by the brokerage houses to close the positions based on the shares of the three companies.
In the statement, it was stated that “The shares in question have been taken into the relevant collateral custody accounts due to the provision of liquidity by the intermediary institutions through dedicated funding for closing the positions linked to the underlying assets of TSKB, SKBNK and ISGYO in the Derivatives Market, where Takasbank provides Central Counterparty service”.
A fund manager, who did not want to be named, pointed out that there was a high amount of open positions in Şekerbank, TSKB and İş REIT shares at the beginning of the week, and stated that with the transfer of the said shares to Takasbank, the open positions in the forward contracts based on these three shares would be closed.
Evaluating that the stress in these three stocks will disappear after this move, the fund manager said, “What does this mean: The open position in the two bank futures contracts is now closed. İş REIT will also be closed before tomorrow. In other words, it shows that the tightness in the market has been resolved.”
The leveraged contracts for the three shares in question will expire tomorrow. Although the number of open leveraged positions based on these stocks has decreased slightly in recent days, it maintained its high course. Investors holding positions need to find as many shares as open positions from the spot market and deliver it to the other party at maturity. However, as the spot market was almost locked, it was not possible to find the shares.
The same fund manager stated that this problem disappeared with the delivery of the shares to Takasbank, but the market was watching the losses incurred by the investors.
No notification was made regarding the cash settlement of İş REIT.
First VIOP crisis
Banking stocks in Borsa Istanbul made a premium of more than 150 percent in mid-July and mid-September, with the effect of investors’ leveraged positions in the futures markets.
While large stocks stopped the decline after three or four days of bottoming, Şekerbank, TSKB and İş REIT, which had high open futures positions, continued their sharp declines in their shares.
While the grassroots movement in Şekerbank and TSKB shares and futures contracts, which continued for nearly 10 days, ended today, İş REIC continued to be the bottom with a 10 percent loss for the 10th day in a row.
As of September 26, open positions in Şekerbank contracts with September maturity decreased by 71 percent, in TSKB contracts by 74 percent, and in İş REIT contracts by 49 percent.