February 3, 2014

Nasdaq Aids Borsa Istanbul

By John D'Antona Jr.

U.S. exchange operator Nasdaq OMX and Borsa Istanbul concluded an agreement in December that includes the delivery of market-leading technologies and advisory services to Borsa Istanbul.

Nasdaq OMX is also taking a 5 percent equity stake in Borsa Istanbul, with an option to increase this by an additional 2 percent; Nasdaq OMX will also receive a series of cash payments. The parties' pathway of forward cooperation may also include a minority participation by Borsa Istanbul in Nasdaq OMX.

Key aspects of the agreement include the provision of Nasdaq OMX's most advanced and complete selection of market technology solutions and advisory services, based on its Genium INET suite and all associated platforms and applications, with regional resell rights and also eventual self-sufficiency for Borsa Istanbul.

Borsa Istanbul will integrate and operate Nasdaq OMX's suite of systems for trading, clearing, market surveillance and risk management, covering all asset classes. The agreement underscores a long-term commitment that will benefit member firms and customers of both exchanges.

Further, the parties are slated to work closely together to cement Borsa Istanbul's position and brand as the capital markets hub for the Eurasia region, serving global issuers, investors and corporations.

"We are delighted to have put in place a highly impactful global partnership with Nasdaq OMX, anchored on the objective of together serving the financial community worldwide," said Dr. Ibrahim M. Turhan, chairman and CEO of Borsa Istanbul. "I am confident that our combined team, powered by one of the most advanced technology suites available in the world today, will consistently offer a cutting-edge trading facility, innovation, platform breadth and flexibility to customers worldwide."

The contract is a culmination of ongoing work between the bourses, following their signature of a first indicative agreement in July 2013.

Borsa Istanbul is advised by Sardis Capital Limited.

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