Turkey agrees deal with London Stock Exchange

ISTANBUL

DHA Photo

Borsa Istanbul (BIST) has announced the signing of a partnership agreement with London Stock Exchange Group (LSEG) covering derivatives and index products.

Under the terms of the partnership agreement, the London Stock Exchange Derivatives Market (LSEDM) will offer trading in futures and options on the BIST 30 Index and on leading Turkish stocks, BIST said in a written statement yesterday, adding that LCH.Clearnet, a subsidy of the LSEG, will provide central counterparty services to LSEDM and its clearing members.

The flagship BIST 30 Index futures currently trade, on average, more than 170,000 contracts per day on Borsa Istanbul. Subject to regulatory approval and customer readiness, London trading in the products is expected to be available in the second half of 2015.

In addition, the Financial Times Stock Exchange (FTSE), another subsidiary of the LSEG, and Borsa Istanbul plan to launch, by the end of 2015, an index partnership involving all Borsa Istanbul-owned and other relevant indices referencing Turkish securities.

The partnership will enable Borsa Istanbul’s Turkish market platform to enjoy the full benefits of FTSE’s unique technical expertise, top global positioning, and leading customer footprint, said the statement.

“As we in Istanbul build the infrastructure of the Turkish capital markets, LSEG is an inspiring partner for us, both as a model for a successful strategy in the sector, as well as a key operating partner for many of our business operations. I am absolutely delighted about our accords, which form the first step in a long journey together, serving our joint customers around the world,” said the CEO and president of Borsa Istanbul, İbrahim Turhan.

The partnership will deliver a set of index products which have adopted the IOSCO regulatory standards, and represents a significant enhancement in accessibility for international investors to Turkish markets.

“Turkey is currently one of the most exciting emerging markets in the world, and will be in a key position to help shape the global economic agenda, through its presidency of the G-20 in 2015. With a near-trillion-dollar GDP, export-oriented economy, and dynamic corporations, its capital markets exhibit enormous potential. The London Stock Exchange Group is the natural trading and index partner for Borsa Istanbul as the Turkish capital markets rapidly develop into a major regional financial hub, alongside the Istanbul Financial Center initiative,” said Xavier Rolet, LSEG’s CEO.

BİST raises stake in Bosnian peer

SARAJEVO - Reuters

Turkey’s Borsa Istanbul, has increased its stake in Bosnia’s Sarajevo Stock Exchange (SASE) to nearly 10 percent but fallen well short of its original target, SASE said Jan. 13.

Borsa Istanbul last month started trading index futures of 10 SASE companies under expansion plans before an initial public offering expected in the first half of 2016. It is trying to increase links with other exchanges in the region, also including Montenegro, as it prepares for the listing.

“The bourse wanted to raise its 5 percent stake to more than 30 percent via an auction held on Jan.
12, but there were not enough sellers,” SASE spokeswoman Almedina Martincevic said, adding that a new auction may be called soon if Borsa Istanbul expresses interest. Borsa Istanbul acquired a total of 300 new shares at a price of 360 Bosnian marka ($217.3) apiece and now holds a total of 608 shares in SASE.