U.S exchange Operator NASDAQ OMX and Borsa Istanbul have today concluded an agreement, which includes the delivery of market-leading technologies and advisory services to Borsa Istanbul.
NASDAQ OMX is also taking an equity stake in Borsa Istanbul. As part of the agreement, NASDAQ takes a five percent equity stake in Borsa Istanbul, with an option to increase this by an additional two percent; NASDAQ OMX will also receive a series of cash payments. The parties’ forward cooperation pathway 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 the globally market-leading 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 world-class 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 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; legal counsel are Turunc and Linklaters.