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Intermediation of Investment Companies for Derivative
Transactions under New Capital Markets Law
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Att. Kerem Tayhac Sagocak
In today’s financial markets, derivative instruments comprises an
essential part of capital market activities, both for banks and interme-
diary institutions, as well as the companies aiming to manage their
portfolio risk. Furthermore, almost 90% of such derivative transactions
are being carried out over the counter (OTC), meaning that the deriva-
tive instruments are traded in a context other than through a formal
exchange (e.g. Borsa İstanbul). The new Capital Markets Law num-
bered 6362 (“CML”) and the regulations issued thereunder, while set-
ting out the framework in which derivative transactions can be carried
out over the counter without any intermediation, also introduce new
rules so as to allow intermediary institutions to take part as dealers in
this market.
New Communiqué on Principles Regarding Investment
Services and Activities and Ancillary Services
Derivative Transactions
Derivative transactions are sub-categorized essentially under two
different headings based on the market where such transactions are
affected. In this respect, (i) transactions that are effected under orga-
nized markets with the standardized agreements are deemed as
exchange transactions; whereas (ii) transactions that are effected
between the parties based on their mutual agreement, and specifica-
tions of which are determined based on the needs and understanding of
the parties, are deemed as over the counter (OTC) transactions. Even
though such derivative transactions pose disadvantages when com-
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NEWSLETTER 2015
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Article of November 2015