NASDAQ Acquires 5% of Borsa Istanbul in Exchange for Technology

NASDAQ OMX has reached a deal with Borsa Istanbul for NASDAQ to provide technology and advisory services to Borsa Istanbul, and NASDAQ will receive cash and a 5% stake in Borsa Istanbul.

The sole exchange in Turkey, Borsa Istanbul combined the Istanbul Stock Exchange, the Istanbul Gold Exchange and the Derivatives Exchange of Turkey into one organization this year. In July, the exchange signed a strategic partnership with NASDAQ, which has now culminated in NASDAQ agreeing to provide technology for trading, clearing, market surveillance and risk management, covering all asset classes, with regional resell rights and also eventual self-sufficiency for Borsa Istanbul. Plus, NASDAQ will provide advisory services to help Borsa Istanbul try to become a capital markets hub for the Eurasia region and to attract international investment.

In return, NASDAQ will take a 5% equity stake in Borsa Istanbul, with an option to increase this by an additional 2%. NASDAQ will also receive a series of cash payments, but the terms of the cash and 2% stake are being withheld due to a non-disclosure agreement between the parties.

Going forward, the two exchanges cooperation may include Borsa Istanbul taking a minority stake in NASDAQ OMX.