An Alternative Dispute Resolution Mechanism In Turkey's Capital Markets Transactions?

The Directive on the Arbitral Tribunal for Customer Disputes of the Turkish Capital Markets Association (the "Association") (the "Directive")¹ brought about new developments for the settlement of disputes. The scope of the Directive is to settle disputes arising in capital market transactions (other than stock exchange transactions).

According to the Directive, the applicant must first apply to the relevant member to settle the dispute within five years starting from the date of the last transaction or activity pertaining to the dispute, before applying to the arbitral tribunal. The members are required to establish a dispute application system on their websites and to inform their customers through their websites that any dispute arising in capital market transactions (other than stock exchange transactions) may be settled by way of application to the arbitral tribunal of the Association. The member in receipt of a notification regarding a dispute from another