London Stock Exchange Expands International Stock Indices with New Turkish Recruit

The UK’s main stock and derivatives trading venue, the LSE, has extended its global derivatives product range to include Turkish

lsegTrading venues in the UK and Turkey have signed a new partnership which provides greater collaboration between the two nations. UK-based London Stock Exchange Group (LSEG) reported that it has signed a partnership agreement with Turkish financial trading exchange, Borsa İstanbul, covering derivatives and index products. The move supports both regions vision of being globally recognised hubs for financial services.

The latest partnership is expected to be a starting point for an on-going co-operation between the two exchanges. According to details issued in the notification, the terms of the partnership agreement, London Stock Exchange Derivatives Market 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.

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Xavier Rolet, CEOdownload, London Stock Exchange Group commented about the partnership in a statement, he said:  “This agreement is an important step in the on-going 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.”

Borsa Istanbul, a combined cash and derivatives trading venue was one of the best performing exchanges in 2014, since its merger in 2013 it aims to strengthen Istanbul’s position as regional financial hub. The exchange believes the latest partnership supports its vision.

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Dr. Ibrahim Turhan, pictured, 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.”

The liquid BIST index contract trades in excess of 170,000 transactions a day and is expected to go live, subject to regulatory approval, in the second half of this year.

“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,” adds Mr Rolet.

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