Tel Aviv Stock Exchange

From MarketsWiki
Jump to: navigation, search
RCG Banner-Ad Leadership 300x60.png
Tel Aviv Stock Exchange
TASE.jpg
Founded 1953
Headquarters Tel Aviv, Israel
Key People Itai Ben-Zeev, CEO
Products TA-25 Index
Website http://www.tase.co.il/TASEEng/Homepage.htm

The Tel Aviv Stock Exchange (TASE) is the only major securities trading exchange in Israel and operates as a fully electronic trading exchange. TASE rebounded quickly from the financial crisis of 2008 and in early 2009 launched single-stock options. TASE also made it easier for smaller Israeli companies to list jointly on TASE and the U.S.-based NASDAQ markets.

TASE ranked as the 29th largest derivatives exchange in 2016 according to the Futures Industry Association's global list of top derivatives exchanges measured by volume. The list reports that TASE's total volume for 2016 decreased to 52 million contracts traded, from 2015's figure of 66 million.[1]

Trading volume in Israel began falling after the country was raised to developed-market from emerging-market status at MSCI in May of 2010. The exchange's CEO, Ester Levanon, resigned in July of 2012 following a failed bid for Israel to join MSCI Inc.’s Europe index.[2] Although Israel has more active startups per capita than any other country, the exchange has had trouble attracting some technology companies. [3]. In late 2016, Itai Ben-Zeev was appointed CEO, replacing Yossi Beinart, who had resigned for medical reasons, and started on January 1, 2017. [4].

The TASE board of directors in 2009 approved a temporary 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 rules lowered the threshold market value required for NASDAQ Capital Market-listed companies seeking dual listing on TASE to around US$6 million.[5] The rules remained in force until April 30, 2010.

In January of 2016 Nasdaq and Tel-Aviv Stock Exchange agreed to form a jointly-operated venture to support private growth companies in Israel. Tel-Aviv Stock Exchange also agreed to deploy Nasdaq's Genium INET technology for trading across a variety of asset classes.[6]

Background

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 securities, from standard equities and government bonds to more complex derivatives like index-linked notes (ILNs) and covered warrants.[7]

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.[8] 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.[9] 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.[10] November 2009's market cap figure was also 65% higher than the corresponding figure a year ago.

Key products

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.[11]

Key people

Annual Derivatives Volumes

Volumes

Year Total Annual Volume* Percent Change
2016 52,097,656 (-)21.1%
2015 66,054,567 3.1%
2014 64,052,496 5.8%
2013 60,514,431

References

  1. 2010 Annual Volume Survey. Futures Industry.org.
  2. Tel Aviv Stock Exchange names new CEO. Haaretz.
  3. Tel Aviv Bourse Taps Outsider Beinart as CEO After Trading Sinks. Bloomberg.
  4. Tel Aviv Stock Exchange appoints Itai Ben-Zeev as CEO. Reuters.
  5. TASE Board Approves Temporary Easement of Dual Listing and Maintenance Rules. Tel Aviv Stock Exchange.
  6. Nasdaq and Tel-Aviv Stock Exchange Sign Landmark Strategic Agreement. Nasdaq.
  7. About TASE - Overview. Tel Aviv Stock Exchange.
  8. Israel Bourse to Begin Single-Stock Option Trading: Week Ahead. Bloomberg.
  9. Tel Aviv Stock Exchange. Wikipedia.org.
  10. Latest Statistics. World Federation of Exchanges.
  11. Market Cap Indices. Tel Aviv Stock Exchange.