The Istanbul Bourse: The First Stock Exchange of the East (19th Century)

One of the world’s first developing stock exchanges, the Istanbul Stock Exchange was initially known as the Galata Stock Exchange. It emerged in the mid-nineteenth century as part of the Ottoman Empire’s efforts to modernize and integrate into the global economy. However, these efforts gradually lost momentum over time. The Ottoman Empire sought to attract financing and domestic and foreign investment through the Tanzimat reforms (1839–1856), which introduced legal equality, property rights, and civil liberties. The establishment of the Ottoman Bank (1856), infrastructure projects, and legal regulations such as the Trade Law (1850) and the Land Registry Law (1858) were of great importance. All of these efforts created the right environment for developing the capital market. England and France were especially involved in setting up banks and companies. However, it also had to deal with problems like insider trading and little regulation. Nevertheless, despite these issues, the Ottoman Stock Exchange was essential for financing railways, banks, and public works. It became a regional financial hub, influencing markets in Egypt, Greece, and the Balkans, and later helped lay the groundwork for establishing financial institutions in Türkiye.