Union of Chambers and Commodity Exchanges of Turkey

Prior to the ceremony, Rifat Hisarcıklıoğlu, President of The Union of Chambers and Commodity Exchanges of Turkey (TOBB), Prime Minister Recep Tayyip Erdoğan, Deputy Prime Minister Ali Babacan, Egemen Bağış, Minister for European Union Affairs and Chief Negotiator, Hüseyin Avni Mutlu, Governor of Istanbul, Vahdettin Ertaş, Chairman of the Capital Markets Board, and Mustafa İbrahim Turhan, Chairman of the Board of Directors of Borsa İstanbul AŞ visited the exhibition named "Our Capital Market from the Ottomans to the Republic". 

The introductory film of Borsa İstanbul A.Ş. was demonstrated prior to the ceremony.  Rifat Hisarcıklıoğlu, President of TOBB, whose views were reflected in the film, said “Mergers and cooperation between financial markets picked up speed everywhere in the world.   As economies globalize, financial markets need to be accessible globally.   In this regard, Turkey takes a very important step.  Capital markets are gathered under the umbrella of Borsa İstanbul.  Thereby, they will work in a more effective and coordinated fashion.  A bigger market will develop.  A center of attraction will be created not only in the local sense, but also in the regional and global senses.” 

Emphasizing the importance of Borsa İstanbul for the Turkish finance world, Hisarcıklıoğlu said, “Today, Turkey is shown among the biggest economies of the world and is a member of G-20.  In line with this perception of a new and strong Turkey, Istanbul should transform into a financial center.     Two weeks ago, I accompanied Mr. President in his official visit to Sweden.   We held a meeting with the CEOs of international brands of Sweden under the patronage of Mr. President and the King of Sweden.  All those world-class companies have their central bases in Istanbul.  Some manage the operations of 50 countries and some of 30 countries from their bases in Istanbul.  They manage their operations in a geography from India to West Africa from Istanbul.  This shows the position of Istanbul in the world and the region.  The growth, institutionalization of financial markets in Istanbul is therefore very important. Turkish capital markets under the umbrella of Borsa Istanbul will reach larger volumes and more investors. The growth of financial markets will influence the real sector positively. Funding opportunities and mechanisms necessary for the growth of our companies will increase.”

In the film, Hisarcıklıoğlu, President of TOBB, stated the following opinions:  “The benefits of being a company that has been offered to the public are in fact very simple. I always tell this in Anatolia: “Do you want free money or not?” There is free capital! Where? The person you will partner with.  The person you will partner with has the money.  Take him as a partner and grow your business! In addition, from the moment you offer your company to the public, you become institutionalized and increase your financial power.  A publicly traded company is deemed more prestigious in domestic as well as overseas markets. But, being publicly-traded brings new funding opportunities and additional responsibilities. The additional responsibility associated with being publicly-traded requires you to have a firm grip on business. On one hand, you develop internal discipline, on the other hand you focus more on improving the company's performance.

As countries develop, individual investors are turning more to investing in stocks. As Turkish economy grows, companies will continue to increase their values. It is not possible to earn money from high interest as in the old days.   Everyone who can save should have some  stock in their portfolio based on their risk profile. But they should think of the long-term, avoid monitoring prices every day  and frequent buying and selling. Instead of speculative companies, they should prefer companies that create added value and are known for their production of goods or services. 

Borsa İstanbul is the foundation stone the vision of Istanbul Finance Center. To be a finance center, product diversity and traded value should be increased.  As the umbrella of the financial markets, Borsa İstanbul will enable markets and products to grow.   This new structure will improve the attraction of Istanbul and Turkey.

Non-financial and financial sectors are the two halves of a whole.  In order for the economy to demonstrate a healthy growth, both should grow concurrently.  With its new corporate structure and vision, Borsa İstanbul will provide the necessary thrust for Turkish economy to grow.  Our national companies should benefit from it more without losing time.  There are the opportunities, do not leave them to others.”

-Prime Minister Erdoğan: "I heartily believe that this union of forces will significantly strengthen our target to make Istanbul the finance center of this new epoch.”

In his speech at the ceremony, Prime Minister Recep Tayyip Erdoğan stated he believed that Borsa İstanbul and the union of forces would significantly strengthen their target to make Istanbul the finance center of the new era, and said, “I hope that this strong stock exchange will underpin the character of Istanbul as a finance center like New York, and Tokyo.”

Hoping that Borsa İstanbul would be beneficial for our country, nation and economy, Prime Minister Erdoğan said: “Today, we inaugurate Borsa İstanbul which become more powerful with the union of forces by Istanbul Stock Exchange, Istanbul Gold Exchange and the participation of the derivatives futures exchange.   Honestly, the Turkish Capital Markets which emerged with the foundation of Dersaadet Bonds Exchanges 140 years ago witness a very important turning point in their history, for which we are very excited.  I hope, in the upcoming days, the official participation of İzmir Derivatives Futures Exchange will take place.  We will have taken an important step for the development of our capital markets and further growth of our economy.”

Stating that the excitement they felt and the historical union of forces had various meanings, Erdoğan said: "Especially, I heartily believe that this union of forces will significantly strengthen our target to make Istanbul the finance center of this new era.  We had a promise when we set out, and we had said, Istanbul was historically the finance center of Turkey, and we would create the physical conditions and take the steps to make it official in this period.

I hope that this strong stock exchange will underpin the character of Istanbul as a finance center like New York, and Tokyo. Hopefully, this new structure of our exchange will be parallel to our 2023 targets, and will increase our speed and motivate us in achieving those targets."

-Babacan: “We want to see our capital markets as an engine that supports the growth of our economy”

Deputy Prime Minister Ali Babacan pointed out that an era had been closed and a new one opened for the capital markets which were gathered under the umbrella of Borsa İstanbul at this historical day, and said the stock exchange which had a history of 140 years and was once among the 4 biggest exchanges of Europe was restructured as a joint stock company with a new legal status. 

Pointing out that the exchange had neither a public nor a private structure, but the blend of the two structure, Babacan said, “Now it has become a company with a shareholding structure.  Last week, we set up the board of directors.  The company has been registered.  Yesterday, it was published on the Turkish Trade Registry Gazette, and today, the initial transactions started at Borsa İstanbul with the first gong hit by our Prime Minister.     I hope that Borsa İstanbul will be useful for our Istanbul, Turkey and the international financial markets. 

Babacan told that Borsa İstanbul would have an important function in making Istanbul a rising star among the international financial markets, and added, “When you talk about the financial sector, you talk about banking, insurance and capital markets.   Borsa İstanbul will constitute a sound leg of the three legs of the capital markets."

-''Expanding the base of the partnership culture is very important'

Emphasizing the importance of capital markets in translating savings to new investments, Babacan said:   “When we look at where and how the companies in Turkey are funded, we see that the banking system has a significant weight.  Our companies carry out their business with loans, carrying more debt in their balance-sheets.

However, capital markets help expand the base of partnership culture.   Expanding the base of partnership culture is very important for both the investors and the companies.

Stating that capital markets were very important in terms of both financial stability and the balance-sheets of companies as well as of the financial sector, Babacan pointed out that it had to be improved in Turkey.

Saying that the Turkish banking system was highly developed,  Babacan added, “When we look at the total balance-sheet of the banks, we see that it is equal to the gross domestic product.  When we look at the capital markets, we see that the number of publicly-traded companies and the ratio of their total value to the national income have not reached the level which our economy deserves.  We want to see our capital markets as an engine that supports the growth of our economy, not only as a means to carry it to the height it deserves.   We have high expectations of Borsa İstanbul.”

-''Now it is the private sector’s turn''

Stating that ISE and the Gold Exchange had been merged under Borsa Istanbul, and the shares of the Turkish Derivatives Futures Exchange would be replaced with the shares of Borsa İstanbul in a month, Babacan said, “Right after that, we will gather the electricity, iron-steel, copper market, I mean, those markets at which Turkey frequently trades internationally, under the umbrella of Borsa İstanbul."

Reminding that they announced their strategy to make Istanbul a true international finance center in 2009, he said:  “By 2023, we hope that Istanbul will become one of the top 10 finance centers of the world.   I do not see any competitor to Istanbul in the geography from London and Frankfurt to Mumbai, perhaps.  The economic potential of Turkey and Istanbul's position as a historical, cultural and universal city makes Istanbul a perfect candidate for an international finance center.

We just need to create a healthy and reliable business environment.  With Borsa İstanbul, we have completed the majority of our 5-year action plan.   We will take one or two more little steps by 2014.  'Now it is the private sector’s turn.' Investors and our institutions that are operating in the capital markets will work heavily.” 

-CMB Chairman Ertaş:''Our Exchange will be Turkey’s showcase to the World'

Vahdettin Ertaş, Chairman of the Capital Markets Board (CMB) pointed out that Borsa İstanbul would Turkey showcase to the world, and said, "I would like to take this opportunity to invite all our companies that are willing to make investments and increase their export capacities to monitor closely the change in our capital markets, and to use capital markets more instead of bank loans from now on.”
Ertaş, Chairman of CMB said that Turkish economy underwent a great change and transformation in 10 years, and this process continued at different sectors at varying speed.

Stating that they speeded up the transformation process of the capital markets with the enactment of the Turkish Commercial Code and the Capital Market Code last year by the Parliament, Ertaş said they set 2013 as the year of change, and 2014 and onwards as a fast growth period. 

Pointing out that the financial crisis that started in financial institutions in 2009 and then spread to the states shifted the direction of money from developed countries to developing countries, Ertaş said, “This gave way for the formation of new financial markets.  Our country managed the crisis process successfully.  Now, it deserves to be a global finance center in the world finance league.  We hope Turkey will become one of the major finance centers of the world by 2023, at the latest."

- Turhan, Chairman of the Board of Directors of Borsa İstanbul: 'The only objective of all our efforts is to introduce a stock exchange that suits the power of our country and the potential of our region'

İbrahim Turhan, Chairman of Board of Directors of Borsa İstanbul, said that they witnessed one of the most important transformations of the Turkish capital markets with Borsa İstanbul.

Pointing that a new era started with the Capital Markets Code No. 6362 passed by the Parliament, Turhan said, “We have completed the change and transformation of our stock exchange in harmony with the 2023 vision of our country and in consistency with the project of Istanbul International Finance Center.”

Talking about the innovations they made within the last year, Turhan stated that they introduced opening and closing sessions in 2012, and took steps to take the standards of the Exchange to the standards of international stock exchanges. 

Turhan drew the attention to the fact that maximum 24 orders per second could be sent to the Exchange by brokerage houses, but they increased that capacity to 108 orders per second with the infrastructural investment, and said the order processing capacity of the Exchange increased by 100 percent, and the lengths of delay were reduced to internationally comparable levels.