Borsa Istanbul
 |
|---|
| Borsa Istanbul | |
| |
| Founded | December 30, 2012 |
|---|---|
| Headquarters | Istanbul |
| Key People | Osman Saraç, CEO; Himmet KARADAĞ, Chairman of the Board and the Executive Committee |
| 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 exchanges offers equities and derivatives. Its stock market offers securities on more than 400 companies, ETFs, REITs and Real Estate Certificates. It offers derivatives trading including futures on its BIST-30 index, single stock futures, FX futures, precious metals, commodities, energies, foreign indexes and metals. It also offers a variety of post-trade services, including clearing and settlement, banking and treasury services and custody and account management.[4]
The Turkish government owns a 49 percent stake in Borsa Istanbul, the majority of which it plans to sell through an IPO. A call for an IPO in 2016, and then a Q2 IPO in 2018 did not materialize, in the later case due to extreme drops in the value of the Turkish Lira.[5] [6] The bourse officially announced its search for a bookrunner for its initial public offering in March of 2015.[7][8] BIST General Manager Hakan Atilla told reporters in February 2020 that the IPO would be completed by the end of the year.[9]
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).[10]
The exchange ranked 19th among global derivatives markets, with 236 million contracts traded in 2018, up 61 percent from a year earlier, according to the FIA Annual Exchange Survey.[11]
Technology[edit]
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 was for Borsa İstanbul's equity market, with plans to go live on Nasdaq technology for all other markets.[12]
On May 6, 2020, Trading Technologies International launched connectivity to Borsa Istanbul, making all the exchange's listed derivative products available through the TT platform and accessible to TT's global user base.[13]
History[edit]
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.[14] 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.
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. [15]
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.[16]
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.[17]
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.[18]
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.[19]
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[edit]
- Mehmet Hakan Ati̇lla, CEO
- Prof. Erişah Arican, Chairperson
- Zafer Sonmez, Member and Acting Chairperson
Volumes[edit]
| Year | Total Annual Volume* | Percent Change |
| 2018 | 236,393,421 | 61.7% |
| 2017 | 146,122,348 | 36.2% |
| 2016 | 107,253,507 | 20.7% |
| 2015 | 88,880,168 | 51.4% |
| 2014 | 58,703,603 | 10.4% |
| 2013 | 53,172,365 | -- |
References[edit]
- ↑ Bourse Istanbul Inaugurated In Gong Ceremony. Haberler.com.
- ↑ Borsa Istanbul embarks on significant changes. FOW.
- ↑ Istanbul Opens New Bourse as Erdogan Seeks to Build Finance Hub. Bloomberg News.
- ↑ Borsa Istanbul Products and Markets. Borsa Istanbul.
- ↑ Turkey Seeks Boost to Istanbul as Financial Hub. Bloomberg.
- ↑ Initial Public Offering. Borsa Istanbul.
- ↑ Borsa Istanbul to launch IPO of stock exchange. Anadolu Agency.
- ↑ Borsa Istanbul chairman says aims to hold IPO when issues Q2 results. Reuters.
- ↑ Borsa Istanbul to lift 2 zeros from indices. Daily Sabah.
- ↑ Borsa Istanbul's new international memberships. Borsa Istanbul.
- ↑ 2018 Annual Volume Survey. Futures Industry.org.
- ↑ Borsa Istanbul Goes Live on Nasdaq Technology Suite. GlobeNewswire.
- ↑ Trading Technologies Launches Connectivity to Borsa İstanbul for Derivatives Trading Via the TT® Platform. Trading Technologies.
- ↑ Information based market manipulation of the new Capital Markets Law ("CML") No 6362. Capital Markets Board of Turkey.
- ↑ Turkey in talks with LSE, Nasdaq on bourse partnership. Reuters.
- ↑ Nasdaq To Take 5% Equity Stake in Borsa Istanbul. The Wall Street Journal.
- ↑ Turkey agrees derivatives deal with London Stock Exchange. The Financial Times.
- ↑ Turkish Borsa Istanbul raises its stake in Bosnian peer. Reuters.
- ↑ London Metal Exchange sells LCH.Clearnet stake to Borsa İstanbul. Reuters.