Liquidnet, the global institutional trading network, announced that institutional investors can now trade Turkish listed securities through its platform effective immediately. Following a rapid global expansion, Liquidnet now provides more than 700 institutional investors with access to 40 equity markets so that they can efficiently implement their global investment ideas. Trades of Turkish equities will be executed via Liquidnet’s appointed local broker on the Istanbul Stock Exchange.
“The Turkish economy has shown strong signs of growth despite global macro volatility, capturing the interest of portfolio managers globally,” said Per Loven, Head of Corporate Strategy for Liquidnet Europe. “As Turkey continues on its path to becoming a regional financial powerhouse, institutional investors looking to unlock value in Turkish growth companies will now be able to source large-scale liquidity in those equities, with minimal market impact, through our trading network.”
The Turkish Stock Index is currently trading at 60,736.81.
Turkey, the 15th largest economy in the world and the seventh largest in Europe, continues to establish itself as a major economic player between Europe, Asia and the Middle East. In June this year, Turkey’s credit rating was upgraded to one step below investment grade by Moody’s Investors Service, which cited the country’s improving fiscal conditions as its primary impetus. Today, there are more than 1,000 companies traded on the Istanbul Stock Exchange with a total domestic market cap of TRY472.6 billion. EUR 422 million of new capital alone was channeled through the exchange via IPOs in 2011(1).
“Turkish equities are attractive from an investment perspective, and the addition of a new market to Liquidnet is welcomed as the ability to trade Turkish equities anonymously, in block size, is a favorable solution”, said Mandy Pike, Global Head of Equity Dealing at Aberdeen Asset Management PLC.
The launch of Turkish equities trading follows Liquidnet’s aggressive global expansion into high growth markets. Most recently, the company introduced equities trading in Indonesia and Malaysia–fast becoming two of the region’s most actively traded markets and clearly signaling investors’ appetite for new performance opportunities.
Turkey is one of the largest emerging market nations for FX and Gold trading. The market was estimated at $19 billion in daily trade volume and since the new regulations were introduced in summer 2011 by the SPK the figures have grown by 10%.
Local banks and brokerages can offer FX at 100 to 1 leverage.
Turkish retail investors make up around 37% of the investments in the equities market, foreign and institutional investors make up the rest.
Forex Magnates wrote a detailed report on the Turkish FX market, available in the Q4 2011 quarterly report.