The London Stock Exchange Group (LSEG) has signed a partnership agreement with Borsa Istanbul (BIST) allowing the London Stock Exchange Derivatives Market to offer trading in Turkish index and equity derivatives products.
Trading and futures will be conducted on the BIST 30 Index and on leading Turkish stocks, and LCH.Clearnet will provide central counterparty and clearing services.
BIST 30 Index futures currently trades an average of 170,000 contracts per day.
Trading the products in London is expected to be available in the second half of 2015, subject to regulatory approval and client readiness.
In addition, FTSE and Borsa Istanbul plan to launch an index partnership by the end of 2015. The partnership would allow the Turkish market platform to benefit from FTSE’s technical expertise, global positioning and customer base.
It aims to deliver a set of index products that will adopt the IOSCO regulatory standards, and will represent increased accessibility for international investors to Turkish markets.
CEO of LSEG Xavier Rolet said: “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 G20 in 2015. With a near-trillion-dollar GDP, export-oriented economy, and dynamic corporations, its capital markets exhibit enormous potential. London Stock Exchange Group is the natural trading and index partner for Borsa ?stanbul as the Turkish capital markets rapidly develop into a major regional financial hub, along side the Istanbul Financial Centre initiative.”
“This agreement is an important step in the ongoing development of London Stock Exchange Derivatives Market, presenting our global client base with the unique opportunity to trade and clear Turkish futures and options in international markets. It underlines the Group’s commitment to enhancing London’s position as the world’s most international capital market, working with Borsa ?stanbul to help boost its liquidity and appeal to global investors.”
Ibrahim Turhan, chairman and CEO of Borsa ?stanbul, said: "London Stock Exchange Group is one of the most thoughtful and pioneering exchange operators in the world, providing depth and breadth of liquidity for an extremely wide range of products and securities. Its strategy has been calibrated to build leadership positions in a wide array of market infrastructure operations with global appeal for the investment community. It is a truly balanced business, with operations spanning trading, post-trade, and indices, amongst others.”
“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."
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