As of 31 August 2011, upon the entry into force of the Communiqué of the CMB Serial No. V/125 on Principles regarding Leveraged Sale and Purchase Transactions and Institutions to Realize these Transactions, the leveraged sale and purchase of foreign exchange, commodities and precious metals are considered to be activities falling under the duty and authority of Capital Markets Board (the “CMB”) and under the scope of the Communiqué, leveraged sale and purchase operations shall only be realized by institutions authorized by the CMB. 

Leveraged sale and purchase operations to be undertaken by authorized institutions are classified as follows:

a. Direct acceptance and/or realization of orders from clients (Market makers)
b. Acceptance of client orders as a representative and forwarding such orders to other institutions for realization purposes (transaction intermediary-White label)
c. Introducing investors to services of other institutions regarding leveraged purchase and sale transactions and intermediation with regards to the execution of contracts or bringing together future contractual parties in return for a commission (Introducing broker)

The carrying out of any marketing, advertisement or promotion activities regarding leveraged sale and purchase operations and of any services subject to authorization under the scope of the Communiqué of the CMB Serial No. V/125 via any media channel, including the electronic environment by overseas institutions addressing investors resident in Turkey, are deemed as contrary to the capital markets legislation. Accordingly, as mentioned above, the institutions providing these services will be subject to administrative and criminal sanctions when detected by the Board.

On the other hand regarding the purchasing and selling of those materials physically, all types of derivative transactions executed on or off exchanges, transactions executed in the interbank market and transactions performed by banks in order to provide liquidity for brokerage firms are exempt from the provisions of this Communiqué.