Recent Development
The Capital Markets Board of Türkiye (the “CMB“) published its bulletin numbered 2026/39 and dated 17 June 2026, introducing (i) the resolution numbered i-SPK.37.9 (the “Resolution“) regulating banks’ cross-border order transmission activities in equities and equity-linked derivatives, and (ii) an announcement (the “Announcement“) clarifying the regulatory treatment of trading in exchange-traded funds (the “ETFs“) listed on foreign exchanges.
What’s New?
1. Banks’ cross-border order transmission activities
- Under the Resolution, a new provision has been introduced into the Guide on Investment Services and Activities and Investment Firms (the “Guide“). Pursuant to this new provision, deposit and participation banks are not allowed to act as intermediaries for the transmission of orders to foreign jurisdictions relating to equities and equity-linked or equity index-linked derivatives.
- However, such banks may still intermediate the opening of accounts for their clients wishing to trade in equities and equity-linked or equity index-linked derivatives abroad, with brokerage firms authorized by the CMB to engage in cross-border trading intermediation, and transmit their clients’ orders to such authorized brokerage firms, provided that an order transmission agreement is executed with such brokerage firms.
2. Trading in foreign ETFs
- With the Announcement, the CMB amended the first article of its earlier resolution numbered 5/263 and dated 27 February 2015 (published in the bulletin numbered 2015/5). Prior to the amendment, trading in foreign ETFs was treated as falling within the scope of Communiqué No. VII-128.4 on Foreign Capital Market Instruments, Depositary Receipts and Foreign Investment Fund Interests (the “Communiqué“). With the Announcement, the CMB clarified that such transactions fall outside the scope of the Communiqué and may be carried out by investment institutions in accordance with the order transmission or order execution provisions of Communiqué No. III-37.1 on Principles Regarding Investment Services, Activities and Ancillary Services. The CMB’s earlier restrictions on spot or derivative transactions on crypto-assets (resolution numbered 43/1445 and dated 27 November 2017) remain reserved.
Conclusion
The Resolution drew a clear line between the activities certain banks themselves may conduct and those reserved for CMB-authorized brokerage firms in the context of cross-border trading in equities and equity-linked derivatives, while the Announcement confirmed that trading in foreign ETFs is allowed through investment institutions under the general order transmission and order execution framework.
