Having performed several successful transformations since the overhaul of Capital Markets Law in 2012 including; opening new markets, developing new products, and establishing strategic global partnerships, Borsa İstanbul and Turkish Capital Markets are excited these days with a new achievement.
First phase of the “transformation with technology program”, named BISTECH by Borsa İstanbul, will go-live on November 30 with the launch of Equity Market trading and settlement system together with surveillance, risk management and other surrounding systems. Derivatives, Debt Securities, and Precious Metals and Diamond Markets will be next to go-live in the second phase. As a result, all markets currently running on completely separate systems will begin to operate on a single and common platform. After the go-live on November 30, the transformation work for the remaining markets will pick up speed in 2016.
As part of the BISTECH transformation program, many major technological, organizational and operational improvements have been carried out with intensive effort in multiple dimensions since 2012, aimed at transforming Borsa İstanbul into globally competitive market operator.
The most significant step in BISTECH transformation is the strategic partnership with Nasdaq and technological transformation programs put in place to revamp Turkish Capital Markets and boost global competitiveness. With strategic partnership and technological transformation Borsa İstanbul plans to; meet technological needs in a sustainable manner, increase technical know-how and experience, develop new products and markets, improve brand value, and own and operate a globally recognized trading platform. Through the technology transformation program consisting of three main areas of cooperation namely; technology transfer, business consultancy services and knowledge transfer, Borsa İstanbul aims to continue to develop the new technology and provide it to other exchanges as needed. In the context of the second important aspect of the agreement, the knowledge transfer; Borsa İstanbul obtained ownership of operating licenses and source codes of the technology to be transferred as well as ownership of the re-sale rights in 25 countries. In this way, Borsa İstanbul intends to reach in a few years its vision to become a leading exchange that is not only self-sufficient but also is a provider of globally recognized technology. The third phase of the Nasdaq strategic partnership and technological transformation program involves business consultancy services to be obtained in 36 areas over 3 years with the overall goal of improving business processes of Borsa İstanbul and Takasbank along with identifying new business opportunities together with Nasdaq.
The new data center built within the scope of BISTECH transformation program offered co-location services to domestic and foreign members, laying the foundation for algorithmic and high-frequency trading and granting similar latency for members in various distances. In addition, with the FIX protocol, the international standard for electronic trading adopted in the Equity Market and Derivatives Market, global investors now have easier access to Borsa İstanbul markets.
What will change in Turkish Capital Markets with BISTECH transformation?
- The 22 years old Equity Market trading system, initiated in 1993, is completely renewed together with all surrounding systems.
- Access to Borsa İstanbul becomes possible from anywhere in the world.
- Turkish Capital Markets starts speaking the same language with the rest of the world in the exchange business.
- Borsa İstanbul takes another giant step towards becoming a global player.
- With the new data center, co-location services offered to domestic and foreign members, laying the foundation for algorithmic and high-frequency trading and granting similar latency for members in various distances.
- Borsa İstanbul switches into a new infrastructure with the capacity to process unlimited number of orders instead of the legacy limited order structure.
- Borsa İstanbul and Takasbank begin to utilize common platform infrastructure.
- Establishment of new markets and development of new products become easier. After the successful completion of BISTECH technological transformation program, Borsa İstanbul will have the ability to run 4 different markets on the same platform.
