Legal analysis of the derivative transactions of the banks in the over-the-counter market

This thesis aims to analyze the legal aspects and the nature of the derivative transactions of banks within the over-the-counter market, ascertain the rights and liabilities of the banks and customers, and examine the potential legal disputes arising from the over-the-counter derivative transactions. Since the derivative transactions are two-sided agreements, banks and customers have certain liabilities in over-the-counter derivative transactions. In the first part of the thesis, the historical developments of derivative transactions in the world and Turkey, functions of derivatives, investment services that the banks are allowed to transact in the capital market, the risk of over-the-counter derivative transactions and the operations of organized market and over-the-counter market are analyzed. In the second part of the thesis, contracting parties to the over-the-counter derivative transactions, derivatives that the banks are allowed to transact in the over-the-counter market, establishment of derivative agreements, legal aspects and nature of the over-the-counter derivative transactions and liabilities of the banks and customers are examined. In the third part of the thesis, the possible conflicts arising from the over-the-counter derivative transactions and the remedies for these conflicts are analyzed. The topics examined in the thesis are evaluated in terms of the Turkish legal system by taking into consideration the new regulations in the capital market and Turkish Code of Obligations and it is aimed to provide legal remedies based on the precedents, doctrine and practices of the Court of Appeals. Keywords: bank, capital market, investment services, derivative transactions, over-the counter derivative transactions.