FT – The London Metal Exchange will work with Turkey's Borsa Istanbul to develop products for the steel market, it said on Wednesday.
The Turkish exchange will also acquire the LME's stake in clearing house LCH.Clearnet, reports Henry Sanderson, commodities correspondent.
The country is aiming to become a financial hub for the region with Borsa Istanbul set to seek a listing this year.
The LME, the world's largest industrial metals exchange, will license steel billet settlement data to Borsa Istanbul and the Turkish exchange will also have the right to disseminate real-time pricing data from the LME and its parent Hong Kong Exchanges and Clearing.
"Over the last year, we have 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 Chief Executive Officer Hüseyin Zafer said.
"We are now completing these linkages through the present agreement with the premier exchange of Asia, HKEx, and we aim to build a strong business together over the coming years to serve investors and issuers."
The LME has disposed of its entire stake in its former clearing provider LCH.Clearnet through the transaction, it said. The LME started its own clearing house, LME Clear, in September.