Nasdaq OMX has signed an agreement to bolster Turkey's Borsa Istanbul and turn it into a major trading hub.
Under the partnership agreement, Nasdaq OMX will provide Borsa Istanbul with an extensive range of its technology and the two will actively collaborate in the region.
The agreement will help to grow capital markets in Turkey and the surrounding area and help to position Borsa Istanbul for an IPO due in Q1 2016.
The Turkish exchange will integrate and operate market technologies for trading, clearing, market surveillance and risk management provided by Nasdaq OMX, covering all asset classes. It will also benefit from Nasdaq OMX's advisory and broker services.
Dr Ibrahim M Turhan, chairman and CEO of Borsa Istanbul, said: "Our objective is to position Borsa Istanbul as a leading integrated multi-asset exchange, and to provide a cutting-edge platform serving issuers, investors and traders globally."
Borsa Istanbul is working to develop deep knowledge of Nasdaq OMX's technology so it can be self-sufficient in their use.
Bob Greifeld, CEO of Nasdaq OMX, added: "The opportunity to provide not only our technology to power the Turkish markets, but also to become a strategic partner of Borsa Istanbul, in order to further develop the region's capital markets is a significant moment or our company."
Borsa Istanbul's growth plans have been accelerated after a change in Turkish capital markets law enabled the exchange to demutualise in December 2012. As part of the demutualisation, it also acquired Istanbul's derivatives and precious metals exchanges and took control of the country's two post-trade firms.
Borsa Istanbul said the partnership deals is a major milestone for capital markets in Turkey and the surrounding region.