Turkey Tightens Hedge Fund Regulations to Curb Market Manipulation

The Turkish Capital Markets Board (CMB) announced a new set of rules aimed at increasing transparency and reducing the risk of market manipulation by hedge funds. Under the revised framework, all hedge funds operating in Turkey must now register with the CMB, disclose their holdings on a quarterly basis, and adhere to stricter leverage limits. The board also introduced mandatory real‑time reporting of large trades and a cap on short‑selling activities. Market analysts say the move is designed to align Turkey’s regulatory environment with international best practices and to protect domestic investors from potential systemic risks. The new rules will take effect from July 1, giving funds a three‑month window to comply. Financial institutions are already reviewing their compliance procedures to ensure full adherence before the deadline.