ERDEM-NEWSLETTER-2018-metin

191 CAPITAL MARKETS LAW be made to determine whether an offense of manipulation has occurred or not. Types of Manipulation Transaction-based Manipulation According to Article 107/1 of the CML, those who make pur- chases and sales, give orders, cancel orders, change orders, or realize account activities with the purpose of creating a wrong or deceptive impression on the prices of capital market instruments, their price changes, their supplies and demands, shall be sentenced to imprison- ment from two years up to five years, and shall be punished with a judicial fine from five thousand days, up to ten thousand days. Transaction-based manipulators affect security prices through their buy-and-sell transactions, and try to create an artificial appear- ance of market activity by hiding their actual intentions. There is no lower or upper limit on transaction values to identify the manipulation. Markets that have asymmetric information and inexperienced retail investors, but do not regulate a public disclosure obligation, get easily manipulated. Thus, the manipulation mostly harms the inexperienced retail investor. Furthermore, transaction-based manipulation is an endangerment. For this offense to occur, it is not necessary for a loss to be directly borne, the purpose of the perpetrator to be achieved, and the benefit to be taken. Behaviors assumed as a transaction-based manipulation are as follows: • Giving buy and sell orders at the same or at close time of the session, and matching issued orders and making transactions that do not result in any change in the share ownership, and these orders and transactions have a significant place within the total transactions of the person, and within the total tran- saction volume;