Turkey luring international investors: London Stock Exchange

LONDON - Anadolu Agency

There remains a lot of interest in Turkey among international investors, a London Stock Exchange official told Anadolu Agency on Jan. 16.

Borsa Istanbul, Turkey’s main stock exchange, signed a deal on Jan. 13 allowing the London Stock Exchange to list futures and options based on the BIST 30 Index and on leading Turkish stocks. The deal is subject to regulatory approval.

Speaking to Anadolu Agency, official Nicolas Bertrand stated that Turkey’s geographical location and particularly its demographics were attractive for foreign investors.

Bertrand said the new partnership would be able to help Borsa Istanbul develop its reach and to accelerate the pace of development.

“The final objective of this agreement is to enhance the liquidity and reach of the Turkish exchange to the international community,” he added.

“I think the international network of the London Stock Exchange can bring a lot to Borsa Istanbul, particularly in the field of index derivatives, the centerpiece of this agreement, where the listings of futures and options of the BIST-30 could become more accessible internationally. That will increase European liquidity on those products and will enhance the reach of the Turkish market in general,” he said.       

Bertrand said the agreement did not include listing any Turkish firms.

“We are expecting that to happen in the course of the second semester. I think this range of products is currently what we see the attracting the most interest at the moment from our clients. And then we will work with Borsa Istanbul to further develop derivative products, moving into other derivative products,” he said.

“Turkey is a developing market which is really successful as it developed at a very fast pace,” Bertrand also said, adding that the increased access to international investors would help speed up that pace.