Borsa Istanbul

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Borsa Istanbul
Borsa istanbul logo.png
Founded December 30, 2012
Headquarters Istanbul
Key People Osman Saraç, CEO
Products Trading of equities, derivatives and precious metals
Website www.borsaistanbul.com

Borsa Istanbul (BIST) was formed from the merger of the Istanbul Stock Exchange, Istanbul Gold Exchange, and the Turkish Derivatives Exchange (TurkDex). It was inaugurated on April 5, 2013[1] and began trading derivatives on August 5.[2] The merger was part of Prime Minister Recep Tayyip Erdogan's goal to make Istanbul a regional financial center. [3]

The Turkish government owns a 49 percent stake in Borsa Istanbul, the majority of which it plans to sell through an IPO in 2016.[4] [5] The bourse officially announced its search for a bookrunner for its initial public offering in March of 2015.[6]

Following the merger of İstanbul Stock Exchange with Turkish Derivatives Exchange and İstanbul Gold Exchange in 2013, international memberships of former institutions were transferred to Borsa İstanbul and Borsa İstanbul became a member of Association of Futures Markets (AFM), Futures Industry Association (FIA), World Federation of Diamond Bourses (WFDB) and London Bullion Market Association (LBMA).[7]

Borsa Istanbul ranked 26th among global derivatives exchanges by volume in 2016, with 107.2 million contracts traded, up from 88.8 million contracts a year earlier, according to Futures Industry Association annual volume figures.

Borsa Istanbul currently has 42 members.

Technology

Borsa İstanbul officially went live December 11, 2015 on nine of Nasdaq's technologies including trading and clearing, settlement, market data management, index calculation, market surveillance, business intelligence, and pre- and post-trade risk management. The initial implementation is for Borsa İstanbul's equity market. The exchange also plans to go live on Nasdaq technology for all other markets, including derivatives, debt securities, and precious metals markets.[8]

History

Borsa İstanbul is a self-regulatory entity established on the basis of Capital Markets Law no. 6362, a new Turkish law regulating capital markets that came into force at the end of 2012.[9] The law is intended to create a more transparent, efficient and competitive environment for the capital markets in Turkey, increase institutional investing and help the country align with EU capital market regulation.

The bourse's CEO is also the chairman of the board and is authorized to manage, administer and represent the company.[10]

In May 2013, Deputy Prime Minister Ali Babacan told the media that Turkey was having talks with London and Nasdaq about potential strategic partnerships for Borsa Istanbul. Other organizations being reached out to included Deutsche Boerse and CME Group. [11]

On December 31, 2013, Nasdaq OMX announced it was taking a 5 percent equity stake in Borsa Istanbul as part of a deal that also includes technology-sharing and advisory services. Nasdaq will have the option to increase its stake in the Turkish entity by 2 percent and will receive a series of cash payments. Borsa Istanbul will share in Nasdaq's market technology.[12]

In December 2014, Borsa Istanbul began trading index futures of 10 companies listed on Bosnia's Sarajevo Stock Exchange.

On January 13, 2015 Borsa Istanbul agreed to allow the London Stock Exchange to offer derivatives based on its blue-chip BIST 30 stocks index. Trades will be cleared by LCH.Clearnet, the LSE’s clearing house. The pair also plan to launch an index partnership later in 2015.[13]

Also on Jan. 13, 2015 BIST increased its stake in the Sarajevo Stock Exchange (SASE) from 5 percent to nearly 10 percent, but fell short of its original target of more than 30 percent. It attempted to do this via an auction held on Jan. 12, but there were not enough sellers.[14]

On March 3, 2015 Borsa İstanbul said it planned to go public in Ankara's latest move to bolster its $220 billion equity market. The bourse said it expects to list up to 43 percent of its capital through the sale of most of the shares now held by the national Treasury.

In March 2015 Borsa Istanbul acquired the London Metal Exchange's share of clearing house LCH.Clearnet. Also, LME’s parent company Hong Kong Exchanges and Clearing (HKEx) announced it would partner with Borsa İstanbul on the dissemination of market data on the LME's steel billet contract.[15]

In April of 2016, four of the exchange's senior executives resigned as part of restructuring program, according to a spokesperson. The executives were chief information officer Adnan Metin, chief human resources officer Hüseyin Zafer, chief audit executive Ali Şir Yardım, and chief legal counsel Iltem Dokurlar.

Key People

Volumes

Year Total Annual Volume* Percent Change
2016 107,253,507 20.7%
2015 88,880,168 51.4%
2014 58,703,603 10.4%
2013 53,172,365 --

References

  1. Bourse Istanbul Inaugurated In Gong Ceremony. Haberler.com.
  2. Borsa Istanbul embarks on significant changes. FOW.
  3. Istanbul Opens New Bourse as Erdogan Seeks to Build Finance Hub. Bloomberg News.
  4. Turkey Seeks Boost to Istanbul as Financial Hub. Bloomberg.
  5. Initial Public Offering. Borsa Istanbul.
  6. Borsa Istanbul to launch IPO of stock exchange. Anadolu Agency.
  7. Borsa Istanbul's new international memberships. Borsa Istanbul.
  8. Borsa Istanbul Goes Live on Nasdaq Technology Suite. GlobeNewswire.
  9. Information based market manipulation of the new Capital Markets Law ("CML") No 6362. Capital Markets Board of Turkey.
  10. About Us. Borsa Istanbul.
  11. Turkey in talks with LSE, Nasdaq on bourse partnership. Reuters.
  12. Nasdaq To Take 5% Equity Stake in Borsa Istanbul. The Wall Street Journal.
  13. Turkey agrees derivatives deal with London Stock Exchange. The Financial Times.
  14. Turkish Borsa Istanbul raises its stake in Bosnian peer. Reuters.
  15. London Metal Exchange sells LCH.Clearnet stake to Borsa İstanbul. Reuters.