Nasdaq OMX Group (Nasdaq:NDAQ) and Borsa Istanbul A.S. have concluded a wide-ranging agreement, which includes the delivery of market-leading technologies and advisory services to Borsa Istanbul, and NASDAQ OMX taking an equity stake in Borsa Istanbul.
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. Further, the parties are 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.
As part of the agreement, NASDAQ OMX will take 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.
"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 partnership positions Borsa Istanbul as a leading, integrated, multi-asset class exchange that operates a best-of-breed platform serving issuers, investors and traders globally. 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.
"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," said Bob Greifeld, CEO, NASDAQ OMX. "Building and powering the world’s capital markets is at the heart of NASDAQ OMX’s Global Technology Solutions business, and we are thrilled to be partnering and investing in the Turkish exchange."
"This new partnership is a milestone for our market technology business," said Lars Ottersgård, Senior Vice President and Head of Market Technology, NASDAQ OMX. "By delivering our entire suite of technology solutions, including our advisory services, to Borsa Istanbul we show the depth and breadth of NASDAQ OMX’s global offering. Establishing global capital markets is core to NASDAQ OMX’s mission and we are pleased to be Turkey’s partner in building efficient and effective functioning markets."
The contract is a culmination of substantial work between the parties, 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.