announcement from BATS Chi-X Europe that it intends to list Turkish stocks got the phones ringing here at Fidessa Towers. Both local Turkish brokers and pan-European houses wanted to know if, how, and when Turkish stocks might fragment like their European
counterparts. A colleague mentioned to me that surely the local Istanbul exchange and its immediate members would prefer just to keep the cosy status quo in place and would not welcome direct competition from across Europe. An understandable view, but the
truth is somewhat different.
First of all, multi-market trading is pretty much inevitable and so embracing and preparing for the change is the sensible option. Second, local Turkish brokers will be able to trade the complete pan-European BATS Chi-X stock universe as a one-stop shop
- something that their domestic clients will surely welcome. Finally, the fact that Turkish stocks can be traded directly in London shouldn't detract from the brokers' real skill which is their understanding of the names involved and the subtleties of the
broader Turkish market.
Those firms that understand this have nothing to be afraid of and, potentially, everything to gain.