Turkish exchange Borsa İstanbul will acquire the London Metal Exchange’s stake in clearinghouse LCH.Clearnet, under an agreement that will also see Hong Kong Exchanges and Clearing (HKEx), LME’s parent company, partner with Borsa İstanbul on the dissemination of market data, according to an LME statement.
“Under the terms of the agreements, the LME will license LME steel billet settlement data to Borsa İstanbul, and will work with the Turkish exchange to develop future products and services for the steel market,” according to the statement. “Borsa İstanbul will also have the right to disseminate real-time pricing data from the LME and HKEx.”
For the past year, the Turkish exchange has “been working hard at both restructuring Borsa İstanbul’s operations, as well as constructing our global linkages, through agreements in America and Europe,” Borsa İstanbul acting CEO Hüseyin Zafer says in the statement. “We are now completing these linkages through the present agreement with … HKEx.”
The HKEx Group “looks forward to working with [Borsa İstanbul] on future initiatives, not only in data and base metals, but also across other asset classes,” Garry Jones, CEO of the LME and HKEx’s co-head of global markets, says in the statement.
LME officials note further that the Borsa Istanbul transaction marks the end of its stake in LCH.Clearnet. The new LME clearinghouse, launched in September 2014, is LME Clear, which LME calls “EMIR compliant and powered by cutting edge technology.”
Need a Reprint?
Leave a Reply