London Stock Exchange Group signs partnership agreement with Borsa İstanbul
- London Stock Exchange Derivatives Market to offer trading in Turkish index and equity derivatives products
- Trades to be cleared by LCH.Clearnet
- FTSE and Borsa İstanbul to launch index partnership in 2015
London Stock Exchange Group (LSEG) today announces that it has signed a partnership agreement with Borsa İstanbul, covering derivatives and index products.
Under the terms of the partnership agreement London Stock Exchange Derivatives Market (LSEDM) will offer trading in futures and options on the BIST 30 Index and on leading Turkish stocks. In addition, LCH.Clearnet will provide central counterparty services to LSEDM and its clearing members.
The flagship BIST 30 Index futures currently trades, on average, more than 170,000 contracts per day on Borsa İstanbul. 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, FTSE and Borsa İstanbul plan to launch, by the end of 2015, an index partnership involving all Borsa İstanbul-owned and other relevant indices referencing Turkish securities. The partnership will enable Borsa İstanbul’s Turkish market platform to enjoy the full benefits of FTSE's unique technical expertise, top global positioning, and leading customer footprint. 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.
Xavier Rolet, CEO, London Stock Exchange Group 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 İstanbul 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 İstanbul to help boost its liquidity and appeal to global investors.
“The index partnership will build on the Group’s powerful track record of working with ambitious exchanges around the world to develop cutting-edge index products. Following our recently completed acquisition of the Frank Russell Group, this further highlights the unique global reach that the FTSE and Russell index franchises can provide for our global partners.”
Dr Ibrahim Turhan, Chairman and Chief Executive Officer of Borsa İstanbul A.S. commented:
"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 indexes, 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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Notes to editors:
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world's financial community. The Group can trace its history back to 1801.
The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and the pan-European equities platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe's capital markets.
Post trade and risk management services are a significant and growing part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH.Clearnet.
The Group offers its customers an extensive range of real-time and reference data products, including SEDOL, UnaVista, Proquote and RNS. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world.
London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group’s own markets, over 40 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology.
Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 2,800 people.
Further information on London Stock Exchange Group can be found at www.lseg.com
About Borsa İstanbul
Borsa İstanbul, with historical roots going back to 1873, is the sole provider in Turkey of trading, settlement, custody and registry services for a wide range of products such as equities, debt securities, repo, sukuk, warrants, options, futures, certificates, and ETFs. The Company operates under a single umbrella, following its de-mutualization and incorporation in 2012, and after successful completion of horizontal integration (via the acquisition of the derivatives and gold exchanges), and of vertical integration (via control of the two domestic post trade firms), shortly thereafter.
Through its markets, Borsa İstanbul offers corporates, investors and traders in the region a broad range of financial products suited to their needs, and efficient access to extensive capital markets. Post trade and depository services are offered by its majority-owned subsidiaries of Takasbank (Istanbul Settlement and Custody Bank) and MKK (The Central Securities Depository). Borsa İstanbul calculates 360 indices that measure and benchmark equity and fixed income markets in Turkey.
Borsa İstanbul is a shareholder in the Stock Exchanges of Sarajevo, Baku, Kyrgyzstan, and Montenegro.. For further information, please visit Borsa İstanbul at www.borsaistanbul.com, and follow us on Facebook (www.facebook.com/borsaistanbulEN), and Twitter (www.twitter.com/borsaistanbulEN).