Possibility of Reparation and Consumer Litigation in the Stock Exchange with A Comparative Study of the US Law and Law of European Countries

Abstract

Consumer rights protection as a group with weak economic and information resources and less bargaining power has always been the focus of lawmakers in various countries. For these shortages it is always emphasized that relying solely on the principle of contractual freedom does not preserve their rights. This is true for both normal and real market consumers, especially the financial market and, above all, the capital market. Small investors or consumers of the stock exchange as the most important part of the capital market are non-specialists who, although buy and sell securities on the stock exchange with the aim of earning money, this activity is not the main job for them and due to the above weaknesses need special legal protections. Among rights of the stock exchange consumer is granting the right to compensation and litigation to them against the possible losses incurred by other players in the stock market which somehow protects their other rights, more importantly, it has a preventive aspect as well. This right is predicted in Securities Market Act adopted in 2005 by our country and other countries like the United States and European countries. And according to art. 36 of the related Act, the jurisdiction to deal with, after disagreement with the relevant center, is delegated to the arbitration board which contrary to what is prevalent in arbitrations and referring to them is optional, referring to the Exchange arbitration board is mandatory. This article seeks to answer the following questions: Who is the stock exchange consumer? What is the form of a capital market litigation?.

Keywords

• consumer
• retail investor
• stock exchange
• right to reparation and litigation
• arbitration board