Tags: Nasdaq | Istanbul | Borsa | trading

Nasdaq to Acquire 5 Percent in Borsa Istanbul

Tuesday, 31 Dec 2013 08:56 AM

Nasdaq OMX Group will take a 5 percent stake in Turkey's Borsa Istanbul in a tie-up that will allow the Turkish exchange to use Nasdaq's market technologies to attract new customers, the two exchanges said on Tuesday.

Turkey wants to establish Istanbul as a regional financial center and under the terms of the deal, the state-owned Borsa Istanbul may acquire a 2 percent stake in the U.S. exchange operator in the future.

Borsa Istanbul will buy trading, clearing and infrastructure technology for all asset classes from Nasdaq OMX and will be able to use and resell the software in 25 countries, Chairman Ibrahim Turhan said at a press conference.

"We continue to work with Nasdaq OMX for a share swap. We will know whether a share swap will happen on June 30, 2014," Turhan said at the company's first ever meeting of stakeholders, including the investment firms that trade on its markets.

"If it happens Borsa Istanbul will have an option to acquire a 2 percent minority stake in Nasdaq OMX. But for that to happen we'll need to have valuations and we don't have exact figures yet."

Borsa Istanbul is Turkey's only exchange, created from this year's merger of the Istanbul Stock Exchange, Gold Exchange and Derivatives Exchange ahead of a planned privatization.

Turhan said he wants Borsa Istanbul to list its shares by the end of 2015.

Nasdaq OMX will have an option to increase the 5 percent stake to 7 percent and will also receive a series of cash payments in the deal.

Borsa Istanbul is advised by Sardis Capital Limited with Turunc and Linklaters acting as legal counsel.

In July Nasdaq, which owns and operates exchanges across the United States and Europe, and Borsa Istanbul signed a partnership deal giving the Turkish exchange access to its markets technology.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Markets
Nasdaq OMX Group will take a 5 percent stake in Turkey's Borsa Istanbul in a tie-up that will allow the Turkish exchange to use Nasdaq's market technologies to attract new customers, the two exchanges said on Tuesday.
Nasdaq,Istanbul,Borsa,trading
302
2013-56-31
Tuesday, 31 Dec 2013 08:56 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved