Turkish Exchange Goes Algo-Friendly

Operators of the Istanbul Stock Exchange today launched a trading rule change that officials say will encourage more algorithmic trading on the exchange.

The new rule allows unconditional order cancellation, according to exchange officials. Previously, cancellations required intermediation by the local exchange brokers on behalf of their clients.

Now, orders pending in the exchange's Stock Market Trading System may be canceled one-by-one, in full or in part on an order-by-order basis. However, the new rule does not apply to quotation orders entered for the securities traded with market-making methods on the exchange's Collective Products Market or its Warrant Market.

The Istanbul Stock Exchange will charge a fee of 0.025 basis points (bps) for each canceled order.

The exchange has also stripped the trading member codes, including inquiries of transactions executed on the exchange, from its market data feeds. Trading books data with member codes will be available for exchange members at the end of the settlement process, the day after the trade date (T+1).

One firm capitalizing on the change is broker-dealer Crédit Agricole Cheuvreux, which has deployed 13 of its standard and custom algorithmic strategies for the Turkish market.

"Turkey is a very interesting region and a market that shows exceptional growth," says Ian Peacock, global head of execution services at CA Cheuvreux, in a prepared statement.