Market abuse regime in Turkey

Abstract

Fraudulent and abusive practices in the securities markets strongly damage investor confidence, and raise cost of capital for issuers, thus hampering development of the capital markets. This article compares market abuse regimes established by the Turkish and the European Union (EU) legislations. The Turkish market abuse regime provides an essential conceptual framework for preventing and combating insider dealing and market manipulation. However, Turkey's membership negotiations with the EU require implementation of the EU legislations, including market abuse rules. This article argues that although current Turkish regulatory framework provides important rules and mechanisms to prevent and combat market abuse, it is not exactly compatible with EU market abuse regime. Implementation of the EU market abuse regime requires some other amendments and improvements in Turkish legislations.