Definition and Duties
What is Commodity Exchange?
According to Article 28 of the Chambers, Commodity Exchanges and Union law numbered 5174. “ The Commodity Exchanges are the associations with public corporation establishment and they are established to handle the purchase and sales of the goods quoted in the commodity exchange market and to determine, register and declare the prices of those goods in the market.”
When the name “Exchange Market” is mentioned, it is thought that it is the Stock - Exchanges where the bonds are exchanged. However, there are differences between the Commodity Exchange Market and the Stock - Exchanges. The fundamental difference between the two is that the Commodity Exchange Market deals with agricultural goods.
The Commodity Exchanges, which are bound to judicial procedures, have financial and administrative autonomy. In other words, they are such associations that they generate their own resources and they also use those resources as well as support public establishments with those resources. In addition, they carry out these procedures without creating any financial burden for the government. Morever, these associations are administered by the committees elected from their own members. This feature enables them to pursue their indispensable liberal democratic qualities. The Commodity Exchanges are also one of the important components of the market economy as the prices of agricultural goods in those markets are determined according to the demand-supply principles.
THE DUTIES OF THE COMMODITY EXCHANGES
In accordance with Article 34 of the Chambers, Commodity Exchanges and Union law numbered 5174 , the duties of the Commodity exchanges are as the following:
a) To regulate and register the purchase and sales of the goods quoted in the exchange.
b) To determine and declare the daily prices of the goods quoted in the exchange.
c) To carry out the legal arrangements about the responsibilities of the buyers and sellers regarding the delivery payments, the rectification of the proceedings, the effective conditions on the prices and in case of a disagreement, to determine general regulations in accordance with the commercial arbitration rules and regulations.
d) To determine price ranges by following national and international markets, to provide guidance to its members about e-commerce and Internet networks.
e) To arrange and approve the documents mentioned in the Article 51 of the numbered 5174.
f) To establish laboratories and technical offices to determine the type and quality of the goods quoted in the exchange and also support such established laboratories and offices.
g) To determine the regulations, customs and precedents related to the markets in their regions and also present them to the Ministry’s approval and declare the results.
h) To make necessary proposals, requests and applications to the official authorities about the market’s activities; in accordance with all or some members’ benefits, to commence a lawsuit.
y) To follow agreements, decisions and appropriate applications which have disruptive effects on competition and in case of discovering such discrepancies, to inform related authorities.
j) In the event that the duties assigned to the ministries or other public offices are given to the exchange markets in accordance with the establishment purposes and areas of functioning mentioned in this Law, to carry out these duties accordingly.
k) To provide the documents required by the members and to provide the related services.
l) To evaluate the applications for the national fairs and to make necessary proposals to the Ministry.
m) To carry out the duties assigned by the Union and Ministry in accordance with the related laws.
