Tel Aviv Stock Exchange
|Tel Aviv Stock Exchange|
|Headquarters||Tel Aviv, Israel|
|Key People||CEO Ester Levanon|
The Tel Aviv Stock Exchange (TASE) is the only major securities trading exchange in Israel and operates as a fully electronic trading exchange. TASE has rebounded quickly from the financial crisis of 2008 and in early 2009 launched single-stock options, while TASE's benchmark stock index has since climbed more than 50% so far this year. TASE recently made it easier for smaller Israeli companies to list jointly on TASE and the U.S.-based NASDAQ markets.
TASE ranked as the 23rd largest derivatives exchange in 2010 according to the Futures Industry Association's global list of top 53 derivatives exchanges measured by volume, up 13.4% on 2009's volume figure. The FIA list, published in March of 2011, reports that that TASE's total volume for 2010 increased to over 80.44 million contracts traded, from 2009's figure of 70.9 million.
The TASE was launched in 1953 by a group of banks and brokerages and continued operating as a standard open-outcry exchange until the mid-1990s, when it converted to a fully-automated electronic trading platform called the Tel Aviv Continuous Trading, or TACT, which processes an array of securitis, from standard equities and government bonds to more complex derivatives like index-linked notes (ILNs) and covered warrants.
The TASE introduced trading in single-stock options contracts at the beginning of Q2 2009, with Israel Chemicals Ltd. the first followed by Bank Hapoalim Ltd., Bank Leumi Le-Israel Ltd. and Teva Pharmaceutical Industries Ltd. At that point the TA-25 Index had increased 14% for the year but in mid-December the TA-25 is now up almost 70%. TASE eventually plans to list single-stock options contracts on all 25 of the TA-25 Index component stocks.
As of August 2009, TASE listed the shares of 660 companies and over 1,000 mutual funds, plus 180 exchange-traded funds (ETFs), 500 corporate bonds and 60 government bonds. TASE's market capitalization stood at US$217.6 billion at the end of November 2009, compared to US$210.2 billion the previous month and just US$132 billion in January, according to the latest statistics from the World Federation of Exchanges. November 2009's market cap figure was also 65% higher than the corresponding figure a year ago.
The Tel-Aviv's Stock Exchange's flagship stock index is the TA-25 Index, which tracks the market value of the TASE's 25 largest listings by market capitalization. The TA-25 was first published as the MAOF Index in 1992 and now also functions in the TASE derivatives markets as the underlying asset for contracts in options, futures, index-linked certificates and reverse certificates. As of December 15, 2009 the TA-25 Index stood at 1,112 points, up 2.73% over the month and 69.8% year-on-year.
TASE Managing Director Ester Levanon was appointed to the position in June 2006, replacing Saul Bronfeld who was appointed TASE chairman. Since her appointment TASE has been promoted to 'developed market' status by global index providers FTSE and MSCI and converted to a fully-automated trading, clearing and settling market. Ms Levanon first joined TASE in 1986 as Chief Information Officer after a 12-year stint with the Israeli Security Service known as Shin Bet, where she established and managed its computer division. She holds an MSc in Mathematics from the Hebrew University of Jerusalem and completed the Advanced Management Program at Harvard Business School.
TASE ranked number 25 in 2009 in the Futures Industry Association's global list of top 53 derivatives exchanges measured by volume, down 23.4% on 2008's volume figure. The FIA list, published in early April 2010, reports that that TASE's total volume for 2009 fell to 70.9 million from 2008's figure of 92.6 million. TASE's best performing contract of 2009 by volume, the TA-25 Options, also dropped more than 23% on the year to finish at 62.2 million.
The TASE board of directors recently approved a tempoary easing in the criteria governing shares listing dually on TASE and the NASDAQ Capital Market list, aimed at boosting liquidity on the Israeli exchange. The new rules will lower the threshold market value required for NASDAQ Capital Market-listed companies seeking dual listing on TASE to around US$6 million. The new rules will remain in force until April 30, 2010.
- ↑ 2010 Annual Volume Survey. Futures Industry.org.
- ↑ About TASE - Overview. Tel Aviv Stock Exchange.
- ↑ Israel Bourse to Begin Single-Stock Option Trading: Week Ahead. Bloomberg.
- ↑ Tel Aviv Stock Exchange. Wikipedia.org.
- ↑ Latest Statistics. World Federation of Exchanges.
- ↑ Market Cap Indices. Tel Aviv Stock Exchange.
- ↑ Ester Levanon named Managing Director of the Tel Aviv Stock Exchange. Tel Aviv Stock Exchange.
- ↑ World Exchange Congress 2010 - Ms Ester Levanon. Terrapinn.com.
- ↑ 2009 Annual Volume Survey. FIA magazine.
- ↑ TASE Board Approves Temporary Easement of Dual Listing and Maintenance Rules. Tel Aviv Stock Exchange.