Building the Turkish Capital Markets of Tomorrow, Today

Today we celebrate the go-live of Phase 1 of the BISTECH project at Borsa Istanbul (BIST). Over the past three years, Borsa Istanbul and the Turkish capital markets community have opened new markets, developed new products, established strategic global partnerships and made huge progress in transforming Istanbul into a major global financial center.

As part of the BISTECH program, many major technological, organizational and operational improvements have been carried out with intensive effort in multiple dimensions.

Since aligning with us as a strategic partner in December 2013, Borsa Istanbul has successfully renewed and replaced all of their equities technology (see today’s announcement) with nine systems that support equities pre-trade risk management, trading, market data distribution, index calculation, clearing, post-trade risk management, settlement, market surveillance and market intelligence. All systems are now up and running with a smooth implementation and go-live process. Phase 2 will transform Borsa Istanbul derivatives, running the derivatives and equities markets on a single platform. We certainly commend Borsa İstanbul for their efforts to not only furthering a fair, transparent and open market, but to seeking to bolster the economic conditions of Turkey.

At Nasdaq, through our technology, we are committed to helping our clients transform the capital markets environment and meet their ambitions. Exchanges are truly fundamental to any country’s economic well-being and financial infrastructure. In order to increase investment and drive growth there must be a strong capital markets foundation. That strong capital markets foundation must have a strong technology backbone. Now with new technological capabilities and improvements in place, Borsa İstanbul is positioned to make Turkey the established regional capital market hub for all of Eurasia.

Leveraging globally-accepted, industry-standard technology, Borsa Istanbul has decreased barriers for entry and really taken the first step to be universally accessible to international investors. They are also now better prepared to service this increased investment opportunity with drastically improved scalability, reliability and flexibility. Through BISTECH, Borsa Istanbul has almost tripled capacity, improved throughput from 10,000 messages/second to 100,000 messages/second and increased order transmission speed with FIX standard protocols implement from 1 millisecond to 100 microseconds. Having top of the line equipment that can be modified and enhanced will help make them the preeminent exchange and the heart of a World Financial Center that will stretch from Middle Europe to Middle Asia. Their intense drive will support their continued growth, create investment opportunities, spread wealth and fuel job creation as they move forward. It will be incredibly exciting to see how they develop.

I invite you to view our short video below where we discuss factors in helping emerging markets transform into globally competitive investment centers and Borsa Istanbul’s story.

Driving Investment in Emerging Exchanges (2.46 minutes)

Lars Ottersgård - hi res
Lars Ottersgård was named Executive Vice President and Head of Nasdaq Market Technology in October 2014. This business provides technology solutions and services to the exchange and financial services industry globally. Market Technology consists of: Sales, representing the full scale and capability of Nasdaq’s offering to exchanges, clearinghouses and CSD's; Advisory & Training Services, which provides professional services and consulting to the exchange and financial services industry; SMARTS, a leading market surveillance and broker compliance solution for exchange and financial industry; and Business Control, an internal function which supports Market Technology in achieving its strategic objectives through financial analysis and planning.

Mr. Ottersgård joined OMX in 2006 as Global Head of Sales for the company's commercial technology business, and has been leading the Market Technology business for Nasdaq since 2008. Prior to joining OMX, Mr. Ottersgård held various positions at IBM for twenty years, where he covered the Nordic and European markets, and was most recently a senior executive for strategic outsourcing for the Distribution and Communication industries.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.