NasdaqOMX Wins on Trading Tech Sale to Borsa Istanbul

Borsa Istanbul has partnered with NasdaqOMX to integrate its comprehensive technology suite for trading, clearing, risk management and market surveillance at the Turkey-based exchange.

The deal is intended to position Borsa Istanbul as a regional hub in capital markets, as well as expand the Turkish exchange’s global presence, according to today’s release. Both companies also plan to collaborate in the region. In addition, the technology agreement is aimed at preparing Bolsa Istanbul for a 2016 initial public offering (IPO).

“Our objective is to position Borsa Istanbul as a leading integrated multi-asset exchange, and to provide cutting-edge platform serving issuers, investors, and traders globally,” stated Ibrahim M. Turhan, Chairman and CEO of Borsa Istanbul, in the release. ”Borsa Istanbul will have full control and deep knowledge of technology and will be self-sufficient in this regard.”

Borsa is the only provider of trading, settlement, custody and registry services for equities, debt securities, repo, warrants, options, futures, certificates and ETFs in Turkey, according to the news announcement.

In the same release, Bob Greifeld, CEO of NasdaqOMX, comments: “The opportunity to provide not only our technology to power the Turkish markets, but also become a strategic partner of Borsa Istanbul, in order to further develop the region’s capital markets is a significant moment for our company.”

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NASDAQ OMX will provide Borsa Istanbul with Genium INET Trading and Clearing, Condico risk, and SMARTS market surveillance solutions. It will also provide advisory services, some limited reseller rights and explore additional collaboration opportunities around Corporate Services, SMARTS Broker, and other areas, according to spokesman.

At the same time, the licensing agreement is also a milestone for NasdaqOMX’s market technology business, noted Anna Ewing, EVP, Global Technology Solutions, NASDAQ OMX. “The opportunity to have our entire suite of market technology products, including our advisory services and broker services, at the center of powering Borsa Istanbul is a clear indication of NASDAQ OMX’s commitment to delivering industry-leading technology to our customers and strategic partners.” NASDAQ OMX owns and operates 26 markets, 3 clearinghouses and 5 central securities depositories.

Zarna Patel is a staff writer for InformationWeek's Financial Services brands, which include Bank Systems & Technology, Insurance & Technology and Wall Street & Technology. She received her B.A. in English and journalism from Rutgers University College of Arts and Sciences in ... View Full Bio