Borsa Istanbul, London Metal Exchange Team Up On Steel Market

Turkey's main stock exchange, Borsa Istanbul, and the London Metal Exchange (LME) will work with to develop products for the steel market, Borsa Istanbul said in a written statement on March 18.

Borsa Istanbul will also acquire LME's stake in clearing house LCH.Clearnet, the statement added.

Turkey is aiming to become a financial hub for the region with Borsa Istanbul set to seek a listing this year.

The LME, the world's largest industrial metals exchange, will license steel billet settlement data to Borsa Istanbul, and the Turkish exchange will also have the right to disseminate real-time pricing data from the LME and its parent, Hong Kong Exchanges and Clearing.

"Over the last year, we have been working hard at both restructuring Borsa Istanbul's operations, as well as constructing our global linkages, through agreements in America and Europe. We have now added a deal with the Hong Kong Exchanges and Clearing to these connections. Our aim is to build up a robust structure to offer services to investors and issuers in the next years" Borsa Istanbul Acting Chief Executive Officer Hüseyin Zafer said.

The LME has disposed of its entire stake in its former clearing provider LCH.Clearnet through the transaction, it said. The LME started its own clearing house, LME Clear, in September.

"We are happy to announcing our cooperation with Borsa Istanbul. We will be announcing new cooperation areas with Turkey's main stock exchange in different asset groups" said LME CEO and co-president of Hong Kong Exchanges and Clearing, Garry Jones.

(PHOTO) - Istanbul