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ARTICLE · 13 MARCH 2007

Over-The-Counter ("OTC") Derivatives

Hergüner Bilgen Üçer Attorney Partnership
Hergüner Bilgen Üçer Attorney Partnership
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Hergüner Bilgen Üçer Attorney Partnership

Hergüner Bilgen Üçer Attorney Partnership

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In contrast to exchange-traded derivatives, OTC derivatives are privately negotiated derivative contracts, provided directly by dealers to end-users or to other dealers, transacted off exchanges. Although the OTC global market is large with the total outstanding nominal amount of USD 298 trillion as of 2005 according to the Bank for International Settlements, OTC derivatives remain unregulated in Turkey.

TurkeyFinance and Banking
Hergüner Bilgen Üçer
Hergüner Bilgen Üçer
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In contrast to exchange-traded derivatives, OTC derivatives are privately negotiated derivative contracts, provided directly by dealers to end-users or to other dealers, transacted off exchanges. Although the OTC global market is large with the total outstanding nominal amount of USD 298 trillion as of 2005 according to the Bank for International Settlements, OTC derivatives remain unregulated in Turkey.

The general principles of Turkish law are applied to these derivative contracts because there is no specific legislation regulating OTC derivatives traded in Turkey. In this respect, the general principle regarding the formation of contracts, and the relevant provisions applicable to a specific type of contract that has the most common characteristic of such derivative contract determined in the Code of Obligations, will be applicable.

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