New partnership offers broader access to Turkish derivatives

European buy-side traders now have new options for accessing Turkey's capital markets, following a new derivatives partnership between the Istanbul Stock Exchange and NYSE Liffe.

European buy-side traders now have new options for accessing Turkey's capital markets, following a new derivatives partnership between the Istanbul Stock Exchange (IMKB) and NYSE Liffe.

Futures and options contracts based on Turkey’s IMKB 30 blue chip index will be available on NYSE Liffe, the London-based derivatives market owned by NYSE Euronext, from Q1 2013 and on IMKB from the end of the year.

Standard individual equity option contracts on some IMKB 30 constituents will be available to trade on both markets.

Universal stock futures and standard and flexible individual equity option contracts based on some companies within the IMKB 30 index will be offered through NYSE Liffe’s clearing arm Bclear. The Istanbul exchange also plans to list new derivatives contracts based on the IMKB 30 index in the future.

Roland Bellegarde, executive vice president for European listing business and cash trading at NYSE Euronext, said the partnership would add value to Turkey’s capital markets.

“The introduction of these new futures and options on underlying stocks from Turkey and derivatives on the IMKB 30 index is the outcome of successful discussions between IMKB and NYSE Euronext and highlights our commitment to working collaboratively with IMKB and meeting the needs of our customers in rapidly evolving markets,” Bellegarde said.

Stock trading on IMKB has experienced significant growth over the last year, rising from €19.5 billion value traded in January, to €27.5 billion for November, despite a mid-year August lull of €17 billion, according to data from Thomson Reuters Market Share Reporter.

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