The Tel Aviv Stock Exchange (TASE) is the country’s only stock exchange or public market for trading securities in Israel. Over 600 companies are listed, and around 60 of these are listed on other country’s stock exchanges as well. TASE also lists 33 series of government bonds, 653 corporate bonds, 180 exchange-traded funds, and over 1,231 mutual funds. The daily volume is around $546 million in US dollars. Since its establishment in 1953, the Tel Aviv Stock Exchange has continued to grow and become an important place for many kinds of securities to be traded. It is extremely important in the Israeli economy, as well as having importance in the country’s economic growth.
Corporations in Israel come to TASE to raise funds needed to finance investments, and the country’s government brings the public into its companies as they are privatized. The Israeli market unofficially traded securities beginning in the 1930s, and when the State of Israel was formed in 1948, a need for a formal venue for trading securities was required. Various banks and brokerages worked together to form TASE.
A computerized system, Tel Aviv Continuous Trading (TACT) allows for trading in real time. Corporate and government bonds, short-term certificates including T-bills, and other security forms are traded. Some other types of securities are stocks, convertible securities, index options and futures, currency options and futures. Index Linked Notes, reverse certificates, and covered warrants are also traded. A TASE website lists the continual flow of data on trades being made. It is also possible to find research and general information about the capital market, reviews, and other information there.
TASE has made an effort to compete with the top markets in the world, and has established other advanced technology to enable this to occur. The main function of the market is trading and clearing, but the market offers other services as well. Galaxy is a Global Clearing, Settlement and Custody Service that works in collaboration with Citigroup to clear securities traded in the U.S. TASE is a member of the U.S. Depository Trust and Clearing Company, which is the largest clearing house worldwide. Investors with equities that are listed in more than one foreign market are handled by the TASE Clearing House.
Remote Trading is a platform that facilitates Direct Market Access from other countries to Israel’s Tel Aviv Continuous Trading. Also, the Corporate Actions System publishes information about a variety of deadlines and dates as well as facts regarding trades. Their disclosure website is in Hebrew only, and it lists announcements from various businesses and companies. The TASE Board of Directors consists of 16 members, including five external directors and representatives of the Bank of Israel and the Ministry of Finance. Seven different members also have representatives, and there are spots for the chairman of the TASE board and TASE Chief Executive Officer.
TASE has reached international agreements with foreign stock exchanges, including the London Stock Exchange in 2007. Fifty Israeli companies were listed on the London Stock Exchange’s Main Market at that time. The Nasdaq Stock Market also signed a memorandum of understanding in 2007 with TASE. This formalized the relationship between the two markets and brought about stronger trading of shares on both markets. TASE has also entered into commitments with the NYSE Euronext, Shanghai Stock Exchange, and Toronto Stock Exchange. Foreign investors became actively involved in the TASE as early as 1994.
This stock exchange has internal and external regulations that are regulated by the 1968 Securities law. The Israel Securities Authority is directly responsible for directly supervising TASE. An internal regulation is the automatic rejection of a trade if the price is 35% over the last trade for that particular security.