Definition of Commodity Exchange

The Definition of Commodity Exchange

The definition of commodity exchange according to the law no: 5174 on Chambers, Commodity Exchanges and the Union (TOBB)

(Unofficial Translation)

ARTICLE 28 – Commodity exchanges are organizations that have legal entities which are founded to deal with trading, determining, registering and pricing of the materials that are included in the exchange. The exchanges dealing with foreign exchange and trading of precious metals are out of the scope of this law.

Commodity exchanges with special qualities can be founded to operate regionally, nationally or internationally.

Regional exchanges can be founded on these conditions: with the written application of more than half of the total number of members in all the provinces in the region to the Union or, with the decision of two out of third commodity exchange assemblies in the region seperately, the favourable opinion of the Union and  the decision of the Ministry (of Trade and Customs.) The founding exchanges become branches in the event of the foundation of a regional exchange.

National and regional exchanges are also tied to the rules on commodity exchanges.

Exchanges are obliged to provide an organization appropriate and sufficient for service, substructure, materials and personnel on the direction of the criteria in the regulation that will be put forward by the Ministry with the favourible opinion of the Union.

The classification of the exchanges is regulated by the regulation that will be put forward by the Ministry.

People residing outside of Turkey can make transactions in exchanges.

Working area of exchanges

ARTICLE 30 – The working areas of the exchanges is the borders of the provinces they are in. This working area can be widened involving bordering provinces or narrowed by the Union Board of Directors until an exchange is founded in those provinces.

Obligation of membership in the exchanges

ARTICLE 32 – The entities that deal with trading of the materials that are in the quatation of the exchange have to be a member of the place they are. Those who do not abide by this rule are made members by the exchange ex officio and are informed about it.

The duties of the exchanges

ARTICLE 34 – The duties of the exchanges are;

a- Regulating and registring the materials that are included in the exchange.

b- Determining and announcing the prices of the materials that are in the exchange on a daily basis.

c- Making general regulations taking effect with the approval of the Union that show the trading sides’ obligations in deliveries and acquisitions, conditions of liquiditation of the dealings, conditions on prices and methods that will be followed on disputes.

d- Following market prices on foreign exchanges and guiding their members on electronic trading and web.

e- Arranging and approving the documents on the page 51.

f- Setting up laboratiories or technical bureaus or joining in the ones already set up to determine the types and qualities of the products that are included in the exchange.

g- Determining the customs, manners and practices, submitting to the approval of the Ministry and announcing them.

h- Making proposals, requests and applications to the related offices on exchange related topics; presenting cases on behalf of the members or the exchange itself in case of benefits for their members.

i- Watching for the deals, decisions or actions that can break competition, and informing the related offices if detected.

j- Carrying out works in the limits of working areas given to ministries or other public organizations in case of their resignation.

k- To provide documents their members need and giving related services in necessity.

l- Evaluating the applications on domestic fairs and making proposals to the Union.

m- To carry out works given by other legislations and duties given by the Union or the Ministry in the frame of related laws.