Citi has launched a suite of algorithmic and direct market access trading products designed for trading on the Turkish equities markets.
Launched on the Istanbul Stock Exchange (ISE) via Citi Menkul, a wholly-owned broking subsidiary which Citi acquired in 2007, the Turkish algos follow in the footsteps of Citi’s new equity trading platform, which debuted in Israel at the end of last year.
“Turkey is becoming a more mainstream market,” said Tim Wildenberg, head of electronic trading, EMEA, at Citi. “They’ve been working to make their markets more accessible. It is a market that is no more or less volatile than other European markets, and if you have some relatively sophisticated algos, you can get some really good results."
Turkey is currently reforming its trading infrastructure and capital markets law to keep pace with international investor demand, and was recently characterised as the ‘Eurasian Tiger’ by Philippe Carré, global head of connectivity at financial technology provider SunGard. The ISE allowed order cancellation late in 2010, which acted as a catalyst for growth in algorithmic trading strategies.
Last month, the clearing and settlement arms of SIX Securities Services, the Swiss-based post-trade securities services provider signed a memorandum of understanding with Takasbank and MKK of Turkey to provide international clearing, settlement and custody services, while in November last year, the ISE formed an agreement with Deutsche Börse to support each other in developing their respective securities markets, carrying out joint research projects and assisting with marketing activities in Germany and Turkey.
“We’ve been surprised and encouraged by the amount of interest we have received from clients wanting to access Turkey,” added Wildenberg. “That’s why we’ve combined our suite of algorithmic trading strategies with an unrivalled level of local knowledge and service to help our clients succeed in this exciting market.”