Legal status of capital market intermediary activities

Since, neither issuing capital market instruments, nor trading in previously issued capital market instruments is possible without having intermediation service from authorized investment firms; intermediary activities, consisted of intermediation to public offerings and intermediation to buying and selling capital market instruments in secondary markets, are the core of capital markets besides other investment activities and services. Thus, in the case that a conflict emerges between issuers, investors and investment firms while having related intermediary services, it is important to discuss the legal status of those intermediary contracts for determining related legislation to apply to the resolution of conflicts. Hence with this study, intermediary activities within the scope of Capital Markets Law No:6362 and the secondary legislation of Capital Markets Board of Turkey; the investment firms that may be authorized; intermediary service procedures and principles; types of intermediary activities; the reflections of those intermediary activities and services in both USA and EU Legislations are discussed and presented in details. Key words: Capital markets, intermediary activities, intermediation contracts, investment firms, proxy contract.