French agency brokerage CA Cheuvreux has reacted to rule changes at the Istanbul Stock Exchange (ISE) by introducing its range of algorithmic trading products to the Turkish market.
From 8 October, new trading rules on the ISE allow orders to be cancelled intra-session, meaning clients are now able to directly cancel orders or decrease order size without any intermediation from the local executing broker.
Previously, the inability to cancel orders limited the use of algorithmic trading tools on the ISE. But now, CA Cheuvreux has deployed its 13 standard and custom algorithmic strategies in Turkey, including percentage volume, VWAP, implementation shortfall and iceberg,.
“Due to its very small average trading size, the Turkish market is very labour-intensive,” said CA Cheuvreux spokeswoman Nadege Cartei. “To be able to automate low-touch orders and therefore free the traders for more difficult trades should be very much appreciated.”
The new rules also mean the ISE will also implement a fully anonymous market structure where the buyer or seller's information will not be published until T+1. The change comes as the government seeks to update and modernise Turkish trading practices, in line with regulatory developments seen in Europe such as MiFID.
“Turkey is a very interesting region and a market that has shown exceptional growth,” added Ian Peacock, global head of execution services. “This high-touch approach coupled with the addition of the ISE to our full low-touch product range completes our offering.”
CA Cheuvreux's Istanbul office, opened in 2008, includes both a local execution team and an analyst group that cover almost 70% of ISE-100 stocks.
CA Cheuvreux already provides sales trading and direct market access in Turkey as a direct member of the exchange. Market response to the introduction of order cancellation on the ISE has been positive, with many observers viewing it as paving the way for future growth.