TURKEY Law and Practice Contributed by: Sera Somay, Merve Kurdak and Doğa Pınarlı Dedebaş, Paksoy
of crypto-asset platforms’ order execution policies, as well as their trading principles, are expressly regulated under the applicable legislation. 6.6 Rise of Peer-to-Peer Trading Platforms There is no clear distinction under the CML between different trading regimes, such as centralised plat - forms and decentralised exchanges (DEXs), which in practice operate as peer-to-peer (P2P) marketplaces. Except for crowdfunding, which may be regarded as a form of P2P activity, conventional capital market instruments are, as a principle, required to be traded on centralised stock exchange rather than on a P2P basis. With respect to crypto-assets, the CMB Communi - qués expressly qualify activities involving the opera - tion of P2P digital marketplaces that enable the direct buying, selling or exchange of crypto-assets between users as “platform activities”. In the operation of such P2P digital marketplaces, the customer due diligence and KYC requirements and limitations set out under the regulations with regard to the platforms must be complied with. Furthermore, pursuant to the CMB resolution dated 19 September 2024, in P2P digital marketplaces that allow transactions to be made directly between users, carrying out transactions on their own behalf but on the account of another person as a regular occupation, commercial or professional activity is considered to be unauthorised crypto-asset service provider activity. 6.7 Rules of Payment for Order Flow Payment for order flow is not a concept that is expressly regulated. The fundamental principles are transparency and the obligation of investment firms to execute client orders in the best possible manner. Within this framework, investment firms are required to execute orders in a way that achieves the best possible result for the client, in accordance with their order execution policy, by taking into account factors such as price, costs, speed, settlement, custody, counterparty and similar considerations when per - forming brokerage and trading activities.
Where the client provides a specific instruction to transmit the order to a particular institution or market, the investment firm shall be deemed to have fulfilled its obligation to execute the order in the best possible manner. In addition, in the context of individual portfolio man - agement, if the portfolio manager receives, for its own benefit, any commission, discount or similar advan - tage from an issuer or an investment firm in connec - tion with a purchase or sale transaction executed for the portfolio, this must be disclosed to the client prior to the provision of the service. 6.8 Market Integrity Principles As per the CML, exchanges are required to establish the necessary surveillance systems within their organ - isations in order to ensure that transactions are carried out in a reliable, transparent, efficient, stable, fair, hon - est and competitive manner, and to detect transac - tions conducted in violation of the CML. Exchanges may also take all necessary preventive measures in this regard. Under the CML, acts such as insider trading (misuse of information), market manipulation, breach of trust, forgery, unauthorised crypto-asset service provider activities, and embezzlement by crypto-asset service providers are classified as crimes and are subject to sanctions including imprisonment and judicial fines. 7. High-Frequency and Algorithmic Trading 7.1 Creation and Usage Regulations Regulatory Framework In Türkiye, the creation and use of algorithmic and high-frequency trading (HFT) technologies are regu - lated primarily through market-specific rules issued by BIST, supported by the CML and secondary legisla - tion. The principal BIST regulations governing these technologies include: • Algorithmic Transactions in Equity Market and BISTECH Pre-Trade Risk Management Procedure (“BISTECH PTRM”); • Equity Market Procedure; and
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