Turkish Derivatives launch on London Stock Exchange Derivatives Market

  • London Stock Exchange Derivatives Market launches trading in BIST 30 Index futures and options denominated in Turkish Lira
  • Trades to be cleared by LCH.Clearnet
  • Expands LSEG’s global derivatives offering
  • Confirms Group’s commitment to Open Access approach

London Stock Exchange Group (LSEG) today announces the launch of trading in Turkish equity index derivatives products on London Stock Exchange Derivatives Market, following a partnership agreement signed between LSEG and Borsa İstanbul earlier this year.

From Monday 14 September, London Stock Exchange’s global client base will be able to trade futures and options on the BIST 30 Index, Turkey’s leading index. The flagship BIST 30 Index futures currently trade, on average, more than 180,000 contracts per day on Borsa İstanbul Derivatives Market (VIOP).  Liquidity will be provided on screen by market makers.

LCH.Clearnet will provide central counterparty services to London Stock Exchange Derivatives Market and its clearing members.

Mr Abdurrahman Bilgiç, Ambassador of the Republic of Turkey to the United Kingdom said:
“This partnership agreement is wide ranging and is designed not to just link the two stock markets but to create a lasting bond between the UK and Turkish financial centres – helping Istanbul to grow as an international financial hub. Indeed, positive developments in the Turkish economy in the last decade have brought Turkey and Istanbul to the forefront. Also, Turkey assumed the G-20 presidency this year.

Today will be another milestone in our economic and financial relations and will add more meaning to Borsa Istanbul’s motto: “Regional hub, global actor."

Nicolas Bertrand, Head of Equities & Derivatives, London Stock Exchange Group said:
“The successful launch of BIST 30 Index futures and options is a significant step in the expansion of London Stock Exchange Derivatives Market and Borsa Istanbul’s capital markets business. It demonstrates our ongoing ability to innovate and present customers with unique global trading opportunities. It also reflects LSEG’s commitment to an open access approach, partnering with other exchanges like Borsa Istanbul as it builds on its ambition to become a major regional financial centre.”

Cécile Nagel, Global Head of Equities, LCH.Clearnet said:
“We’re pleased to be working with London Stock Exchange Derivatives Market and Borsa Istanbul to offer our members the ability to clear futures and options on the BIST 30 Index. This initiative demonstrates our ongoing commitment to expand our derivatives offering in partnership with trading venues. We are delighted to be part of this launch.”

Çetin Ali Dönmez, Executive Vice President Borsa İstanbul said:
“Reaching the global network of investors via LSEG is an important milestone for us in our strategic vision of strengthening the international position of Turkey in the global economy. This partnership enables us to expand our product offering and increases global investor base exposure. It allows easier access to the most dynamic and emerging economy of the region, in a cost efficient way thus giving investors an opportunity to diversify their portfolios. Additionally, trading of the BIST 30 Index futures and options on two different venues will boost total liquidity at both exchanges.”

Muammer Cakir, Head of Derivatives, Borsa İstanbul said:
“Listing BIST 30 Index derivatives at LSEDM will give us well-deserved visibility on a global scale.  Additionally, trading and clearing at London Stock Exchange Group’s venues will offer a global client base a unique opportunity to have operational and collateral efficiencies which are invaluable in the post-crisis financial regulatory framework. Ability to access Turkish products in a single platform will also attract a new class of investors for Turkey, creating a virtuous cycle benefiting both markets.”

- Ends -

For further information:

Media
Alexandra Ritterman
+44 (0)20 7797 1222
newsroom@lseg.com

Notes to editors:

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) is a diversified international market infrastructure and capital markets business sitting at the heart of the world's financial community. The Group can trace its history back to 1698.

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 Turquoise, a pan-European equities MTF. It is also home to one of the world’s leading growth markets for SMEs, AIM. Through its platforms, the Group offers international business and investors unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of multi-asset global CCP operator, LCH.Clearnet Group, LSEG operates CC&G, the Italian clearing house; Monte Titoli, the T2S-ready European settlement business; and globeSettle, the Group’s newly established CSD based in Luxembourg.

The Group is a global leader in indexing and analytic solutions. FTSE Russell offer thousands of indexes that measure and benchmark markets around the world. The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, Proquote and RNS.

Following the acquisition of Russell Investments, LSEG conducted a comprehensive review of the investment management business to analyse its strategic fit with the Group. This was concluded in February 2015, and LSEG is now exploring a sale of the business in its entirety. London Stock Exchange Group is a leading developer of high performance trading platforms and capital markets software for customers around the world. In addition to the Group’s own markets, over 35 other organisations and exchanges use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 4,700 people.

Further information on London Stock Exchange Group can be found at www.lseg.com