Open Access in Action: You can now trade Turkey BIST30 index derivatives, in London
An openness to partnering with other markets is a defining characteristic of LSEG, reflecting our commitment to Open Access: joining with other exchanges such as Borsa Istanbul to deliver a customer-focussed solution. It demonstrates our ongoing ability to present customers with unique global trading opportunities.
This approach means London Stock Exchange’s global client base now has the opportunity to use their existing market connections and infrastructure to trade futures and options on the BIST 30 Index, with liquidity provided on screen by market makers. This provides customers with one of the most efficient routes to access Turkey and to manage their position and risk with respect to the market, without having to leave London.
The contract and clearing process have been designed to significantly reduce costs and increase efficiency. Because users can use their existing London Stock Exchange and LCH.Clearnet connections as well as post margin in currencies other than Turkish Lira, the service will have a multiplier effect, bringing new participants to this exciting market. It benefits all involved, from the buy-side looking for exposure to Turkey to the companies listed on Borsa Istanbul.
The growth of derivatives products in emerging markets has remained strong in the last few years and activity has become more global. Increasingly, equity derivatives business is transacted cross-border and no longer dominated by domestic participants. As a result, the cooperation between exchanges in established markets and their emerging country counterparts under an Open Access model will stimulate choice in the execution and clearing of products across asset classes, create deeper pools of liquidity, reduce costs and promote enhanced risk management across the whole financial system.