Turkey has vast economic potential: NASDAQ CEO

ISTANBUL - Anadolu Agency

Officals of NASDAQ and BIST ring the gong at Borsa Istanbul on Jan 20 to celebrate the signing of a strategic partnership agreement. NASDAQ OMX is acquiring a 5 percent equity stake in the BIST.

The New York-based NASDAQ OMX Group’s CEO Robert Greifeld has praised the Turkish economy, saying that the group is willing to learn from Borsa Istanbul (BIST) and share it with its partners.

“The economic potential of Turkey is immense and under-appreciated,” he said in interview with Anadolu Agency Jan. 20, adding “I think part of this project provides the Turkish economy a proper venue to continue to grow and develop as a market.”

In response to a question as to why the NASDAQ OMX preferred to sign a partnership with BIST, Greifeld said that Turkey’s move to consolidate the markets under BIST was a positive development and that the market will become “a very strong regional player.”

Pointing to the fact that the NASDAQ OMX will also learn a lot from BIST, Greifeld said, “It is just a way to transfer knowledge in a quicker and more efficient manner.” He added that BIST has the potential to become a regional market, but needs more time.

BIST and the NASDAQ OMX Group held a press conference Jan. 20 to celebrate the signing of a strategic partnership agreement on Dec. 31, 2013.

Market hub

The agreement is expected to cement Borsa Istanbul’s position and brand as the market hub for the Eurasia region, serving global issuers, investors, and corporations.
BIST Chairman Ibrahim Turhan said Jan. 20 that the agreement is the start of a new era for the Turkish market.

“We are entering into a new phase, hand-in-hand.”

With the agreement, Turhan said, the BIST will be able to provide a solution to 25 neighboring countries through the NASDAQ OMX and added that the BIST will learn from the NASDAQ while doing business with the countries.

Borsa Istanbul will integrate and operate Nasdaq OMX’s market technologies for trading, clearing, market surveillance and risk management, covering all asset classes including energy contracts, with the deal, the sides had said during the announcement of the alliance.

The NASDAQ OMX is taking a five percent equity stake in the BIST, with an option to increase its share by an additional two percent. The NASDAQ OMX will also receive a series of cash payments.

The parties’ future cooperation may also include minority participation by BIST in the NASDAQ OMX.
The deal is a cornerstone for expanding the Istanbul exchange’s global presence, while strengthening its position as a regional hub for capital markets.

Turkey merged the Istanbul Stock Exchange, Gold Exchange and Derivatives Exchange into Borsa Istanbul this year ahead of a planned privatization, as it seeks to attract growing trade from the world’s leading investment banks and brokers.

State-owned Borsa Istanbul will be ready to list its shares in early 2016, BIST Chairman İbrahim Turhan had said.