Tel-Aviv Stock Exchange

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Tel-Aviv Stock Exchange
Tase.png
Founded 1935
Headquarters Tel Aviv, Israel
Key People Ittai Ben Zeev, CEO
Website http://www.tase.co.il

The Tel-Aviv Stock Exchange (TASE), founded in 1935, is a fully automated equity and derivatives exchange.

In 2019, it provided listings for 447 companies with a total market capitalization of $209 billion. The exchange also offers 120 ETFs and derivatives on a number of underlying assets, including the TA-25 index, the TA-Banks index, the ILS/USD exchange rate, the ILS/Euro exchange rate, and 10 individual stocks included in the TA-100 index.

The exchange is expected to go public in 2019, listing almost one-third of its shares. As a privately held company, it has an estimated market cap of $152 million.[1]

The TASE Clearing House, a subsidiary of the Tel Aviv Stock Exchange, provides clearing and custody services in securities traded on the TASE and in the MTS system, a European trading system in which, among other things, government bonds of the State of Israel are traded.[2]

TASE ranked 27th in derivatives volumes globally in 2017, with 48 million contracts traded, up 3 percent from a year earlier, according the to Futures Industry Association's Annual Volume Survey.[3]

Products

TASE offers trading in stocks and stock indices, convertible securities, bonds, T-bills, ETNs, mutual funds and derivatives. [4]

History

Local trade in securities began in Tel-Aviv in the 1930s, before the State of Israel was formed. Trade was carried out through the Exchange Bureau for Securities, founded by the Anglo-Palestine Bank (which became Bank Leumi Le-Israel) in 1935. With the formation of the State of Israel in 1948, a need arose to formalize trading in securities. In September 1953, a number of banks and brokerages joined together to establish the Tel Aviv Stock Exchange.[5]

In the 1990s the exchange replaced its trading floors with a computerized system called the TACT (Tel Aviv Continuous Trading), allowing transaction orders to take place in real time. The TACT handles trade in all forms of securities: stocks, convertible securities, corporate and government bonds, short-term certificates (T-bills known in Israel as Makams), index options and futures, currency options and futures and a variety of securities derivatives such as Index Linked Notes (ILNs), reverse certificates and covered warrants.[6]

On June 30, 2008, NYSE Euronext and the TASE signed a memorandum of understanding (MOU) that established "enhanced cooperation" between the two exchange companies, especially in the area of cross-listings.[7]

The board of directors approved the launch of options and futures on the TA-100 index on Oct. 8, 2014.[8]

In February of 2017 the TASE revamped its indexes, adding 10 more companies to its blue-chip index.

In March of 2017, Israel’s parliament voted to end Israeli banks’ control of the Tel Aviv Stock Exchange in a reform designed to turn it into a for-profit bourse. The Knesset passed legislation to demutualise Israel’s only stock exchange and ordered that the banks had to sell their TASE shares within five years so that each would hold no more than 5 percent of the exchange.[9]

In 2018, TASE sold almost 20 percent of the exchange to Manikay Partners, an investment fund and another 19 percent to foreign investors. The exchange also aimed to sell at least 31.7 percent of the exchange to retail investors in 2018 but that plan was postponed.

Contract Volume

Year Total Annual Volume Percent Change
2018 48,107,098 3,1%
2017 46,641,131 (-10.5%)
2016 52,097,656 (-10.5%)
2015 66,054,567 (-21.2%)
2014 64,052,496 5.8%
2013 60,514,431 (-)9.9%
2012 67,179,795 (-) 32.1%
2011 98,965,159 23.0%
2010 80,440,925 13.4%
2009 70,914,245 --

Key People

References

  1. Tel Aviv Stock Exchange expects IPO to go ahead this year. Reuters.
  2. TASE Clearing House. TASE.
  3. 2018 Annual Volume Survey. Futures Industry.org.
  4. Products. TASE.
  5. Overview. TASE.
  6. Overview. Tel-Aviv Stock Exchange.
  7. Press Release. NYSE Euronext.
  8. TASE launches options and futures on TA-100 index. Hedgeweek.
  9. Israel enacts law to turn Tel Aviv exchange to for-profit bourse. Reuters.