New Status of Borsa Istanbul After Being Converted to a Joint Stock Corporation
“Istanbul shall first become a regional financial center, and ultimately a global financial center.”
Driving force for the conversion
In recent years, stock exchanges in both developed and emerging markets have encountered notable competition and merger activities, along with technical developments such as various operational systems and electronic network systems due to unprecedented technological advancements. During this period, many stock exchanges have opted for transformation into joint stock companies, which evoked the need for transformation in the organizational structure of the Istanbul Stock Exchange. Furthermore, the “Strategy and Action Plan for Istanbul International Financial Center”, approved in 2009, also indicated that the exchanges would be given legal status that will allow them to operate with such flexibility that will enable them to respond to market dynamics and exclude them from the legislation relevant to the general public administration.
All of these developments have led the Istanbul Stock Exchange into a reorganization by way of the Capital Markets Law (the “Law”2) as a joint stock company subject to the general principles of the Turkish Commercial Code (the “TCC”3). Pursuant to the Law, Borsa Istanbul Anonim Şirketi (“Borsa Istanbul”, “BIST” or the “Company”) was established as a joint stock company for the purpose of serving as a securities exchange.
Goals and benefits from the new structure
The goal of the new structure was to adapt the organizational structure to be in line with the new needs and requirements in capital markets. Under the Law, the Istanbul Stock Exchange and the Istanbul Gold Exchange have been brought together under the Borsa Istanbul organization. At a later stage, the Turkish Derivatives Exchange was also brought into this structure and all exchanges are now under the same organization.