Foreign exchange market (FOREX) is the biggest volume financial market in the world. Through FOREX, one currency of a country is exchanged for another country’s currency. Since it is the world’s largest financial market, overall estimated daily average turnover of upwards is about $5.1 trillion. With the extend of globalization, both developing and developed countries have started to use similar policies among which financial liberalization is one of them. Financial liberalization is opening up economies to international capital flows, in particular by restructuring regulation of developing countries where controls and restrictions are either reduced or removed in order to attract international financial activities of developed countries to their own countries. In this study, analysis was done for Turkey’s position in the world; specifically, for the period before and after Capital Market Boards regulation. The new regulation creates authority to brokers. In order to compare the effect of changing legal structure on the participants of forex market, the groups of years were separated as the selected values of the year of 2012 before and after. The results of independent test were carried out. In conclusion, after the comparison of the parameters, the change in legal structure has significantly led to expansion in forex transactions. Test results for transactions in forex market shows that EUR/USD transactions have significantly increased after the regulation. In addition, the increase in the participation of both local and foreign investors after the regulation has also found to be statistically significant. Keywords: Forex, Forex Markets, Regulation and Legal Changes, Turkey.
