Nasdaq takes stake in Borsa Istanbul
Nasdaq plans to take a 5 percent stake in Borsa Istanbul in a partnership through which it is also providing the Turkish exchange with a comprehensive suite of trading technology.
As part of the agreement, Nasdaq is sharing with Borsa Istanbul its Genium INET multi-asset trading platform as well as all associated platforms and applications. The company is also providing Borsa Istanbul with advisory services.
The Turkish exchange will have regional resell rights to the Nasdaq technology systems, with the goal of eventual self-sufficiency. Moving forward, the agreement may also involve Borsa Istanbul having "a minority participation" in Nasdaq OMX.
Nasdaq will have the option to increase its initial 5 percent stake in the Turkish exchange by an additional two percent. The American company will also receive a series of cash payments for the technology and services provided.
The agreement builds on a strategic partnership between the two exchange companies that was first announced in July. At that time it was announced that Borsa Istanbul would integrate and operate Nasdaq technologies for trading, clearing, market surveillance and risk management covering all asset classes, including energy contracts.
Bob Greifeld, Nasdaq OMX CEO, said the collaboration is aimed at establishing Borsa Istanbul as the capital markets hub for its area.
"We are pleased to be working side-by-side with Borsa Istanbul as they evolve toward becoming an international hub that will attract global investors to the Eurasia region," he said.
Lars Ottersgard, Nasdaq senior vice president and head of market technology, called the partnership a "milestone" in terms of the breadth of technology solutions and advisory services that were being shared.
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