DESCRIPTION OF EXCHANGE
Definition of Commodity Exchange According to Article 28 of the Law No. 5174 on the Union of Chambers and Commodity Exchanges of Turkey
Commodity exchanges are public legal entities established for engaging in purchase and sale of goods that fall under a commodity exchange and as well as determination, registration and announcement of the prices of such goods formed in the commodity exchange in accordance with the principles stated in this Law.
Foreign currency exchanges and exchanges for valuable mines are excluded from the scope of this Law.”
The establishment of commodity exchanges is governed by Article 29 of the Law number 5174.
ARTICLE 29. – Commodity exchanges are established by the Ministry upon the affirmative decision of the Union in the provinces in line with the requirements of commercial necessities.
Commodity exchanges having a private nature may also be established to perform country-wide, regional and international activities.
A regional commodity exchange shall be established by the decision of the Ministry upon the application of more than half of the total members in regional provinces to the Union in writing or with the decision of two thirds of total members of commodity exchange assemblies individually and with the affirmative view of the Union. Founder commodity exchanges shall be transformed into a branch by the establishment of the regional commodity exchange.
Country-wide and regional commodity exchanges are also subject to the provisions on commodity exchanges.
Commodity exchanges are obliged to provide sufficient personnel, equipment, infrastructure, appropriate and sufficient organisation for the service to be rendered in line with common criteria based on conditions of commodity exchange determined by a regulation to be promulgated by the Ministry after the affirmative view of the Union is acquired.
The classification of commodity exchanges regarding their nature shall be determined by a regulation to be promulgated by the Ministry after the affirmative view of the Union is acquired.
Persons residing abroad may perform transactions in commodity exchanges of international nature.
Duties of the commodity exchanges are specified under Article 34 of the Law No. 5174 on the Union of Chambers and Commodity Exchanges and the Law on Chamber and Commodity Exchanges
ARTICLE 34. - Duties of the commodity exchange are:
a) To arrange and register the purchase and sale of the goods quoted with the commodity exchange.
b) To duly determine and announce the daily prices, which occurs in the commodity exchange of the goods quoted with the commodity exchange.
c) To make general regulations that come into effect by the approval of the Union concerning obligations of seller and purchaser for delivery, acceptance and payment, conditions of liquidation terms of transactions, conditions that have effect upon prices, and arbitration rules for resolving disputes that may arise.
d) To follow domestic and overseas commodity exchanges and to communicate the prices, to guide its members concerning electronic commerce and internet networks.
e) To issue and approve the documents stated in Article 51.
f) To establish laboratories and technical offices or to participate in the ones that have already been established in order to determine type and quality of the goods quoted with the commodity exchange.
g) To determine the customs and practices regarding the commodity exchange in its regions, to submit them to the Ministry for approval and to announce them.
h) To make proposals, wishes and applications to the relevant official authorities with regard to the subjects of activities of the commodity exchange; to bring a suit on behalf of the commodity exchange or its members when all or some of the members have interest.
i) To monitor the agreements, decisions and actions in a character of concerted practice that may have deteriorative effects over the competition, and to inform the relevant authorities in case of identification of any.
j) To carry out works, which are given to the ministries and other public institutions under legislation, in case they are given to the commodity exchanges in the framework of their establishment and fields of activities that are stated in this Law.
k) To provide necessary documents to its members and render services in connection therewith.
l) To assess the applications to be made for domestic fairs and make proposals to the Union.
m) To perform the duties assigned by other relevant legislation and by the Union and the Ministry in accordance with the relevant Laws.