Tel Aviv Stock Exchange

History

The precursor to the TASE was the Exchange Bureau for Securities, founded by the Anglo-Palestine Bank (which became Bank Leumi) in 1935. With rapid growth of the Israeli economy after the founding of the state, a formal stock exchange was incorporated and began operations in Tel Aviv in 1953.

In 1993 TASE had the third largest number of IPOs of all the world stock exchanges.

The exchange completed its conversion to electronic trading in 1999, under the supervision of Ester Levanon, who was later named CEO of the exchange.

In 2005, non-Israeli investment in TASE reached an all-time high of NIS 2 billion, while the TA-25 increased 34%. By the end of the year foreign investment banks UBS, Deutsche Bank, and HSBC had become members of TASE.

In September 2006, TASE bought out the shares of TASE Clearing House from TASE members, making it a fully owned subsidiary.

In 2007, trading averaged $500 million a day, a 55% increase over the previous year. The number of exchange-traded funds (ETFs) grew to 240. The Tel Bond-20 index was also launched that year. The TA-25 rose 175% in the period 2004–07.

In May 2008 Northern Trust started the first US exchange-traded fund on the NYSE based on TASE's benchmark, the TA-25 Index.

Performance

As of May 25, 2010, TASE's largest stocks by market cap were Teva Pharmaceutical Industries ($51.5B), Israel Chemicals ($14.3B), Bank Leumi ($6.1B), and Bezeq ($6.0B). Daily turnover of shares and convertibles in 2009 was USD 432 million, $1,035M of bonds and exchange-traded notes (ETNs), $163M of T-bills, and 252,000 options and futures contracts. Total market cap at the end of 2009 was $189B shares and convertibles, $174B government and corporate bonds, and $23B T-bills, a total of $386B. On April 25, 2010, TASE's benchmark TA-25 index reached a record high of 1,239 points.

For the decade ending 12 February 2012, the TA–25 index topped the Bloomberg Riskless Return Ranking list, outperforming 23 other developed-nation benchmark indexes when adjusting for volatility.

CEO Ester Levanon resigned on 18 July 2013, effective 31 December 2013. A week later, on 25 July 2013, Chairman Saul Bronfeld resigned. According to Bloomberg, the executives’ decisions follow a drop in trading volume and the bourse’s failed bid to join MSCI Inc.’s Europe Index. Bronfeld, who served as chairman since 2006, cited the “hostile control” by the Israel Securities Authority and the regulator’s interference in the executive management of the bourse as the main reasons for his resignation.

The TASE CEO since January 2014 is Mr. Yossi Beinart. He is a Director at the Tel-Aviv Stock Exchange clearing house Ltd. board and at the MAOF clearing house Ltd. board. Mr. Amnon Neubach is the Chairman of the TASE Board since April 2014.

International agreements

In February 2007 the TASE and the London Stock Exchange signed a formal memorandum of understanding intended to smooth the trading of securities listed on both exchanges. At the time, 50 Israeli companies were listed on the London Stock Exchange. A similar memorandum of understanding was signed between the TASE and The Nasdaq Stock Market in November 2007. NASDAQ at the time had 70 Israeli companies listed on the exchange, with a combined global market cap of over US$60 billion.

In July 2008, the TASE and NYSE Euronext entered into a memorandum of understanding. At the time seven Israeli companies traded on the NYSE.

In November 2008 the TASE and the Shanghai Stock Exchange signed a memorandum of understanding, with delegations to be sent to each other's markets to deepen understanding and promote trade.

In February 2010, the TASE and the Toronto Stock Exchange signed a memorandum of understanding, committing to the cultivation of stronger ties between the two exchanges.

54 Ahad Ha'am street

In 1983 the exchange moved to Ahad Ha'am Street in Tel Aviv, where it remained for 31 years, until it moved to its current location in 2014.

2 Ahuzat Bayit Street

In 2014, TASE moved to its new premises in Tel Aviv, located at 2 Ahuzat Bayit Street. The modern building covers an area of 22,600 square meters and has 14 floors. It is optimized for computer trading. Its computer systems are located in an underground bunker in case of emergencies, in which there is space for emergency personnel.

Architectural critic Keshet Rosenblum praised the new building, due to its appropriate design, restraint in its form and public access. The lobby of the building is public and there is cafe and stock exchange museum.

Listing

The Exchange offers four programs under which companies can list on the exchange: three programs for normal operating companies, and an additional venture program for development-stage technology companies. In addition, the TASE has a program for the listing of Limited Partnership Units.

Trading

Trading in shares takes place Sunday through Thursday between 9:00 a.m. and 5:30 p.m. (4:30 p.m. on Sundays) local time (GMT+2) on a computerized trading system. Bonds, Treasury bills and Derivatives are traded between 9:30 a.m. and 5:30 p.m. (4:30 p.m. on Sundays) Dual listing is permitted, and many larger Israeli companies are dually listed on the TASE and one or more foreign markets, usually the New York Stock Exchange or NASDAQ, but also the American Stock Exchange and London Stock Exchange.

During regular trading hours the TASE can process orders of four varieties: LMT, MKT, FOK, and IOC.

TASE links to the U.S. markets with a direct link to DTC, a subsidiary of the Depository Trust & Clearing Corporation, which facilitates the trading of dually listed securities.

The ETF that tracks the performance of Israel's overall market is the iShares MSCI Israel Capped Investable Market Index Fund, or EIS (NYSE Arca: EIS).

Indices

The major stock market indices of the TASE include:

These and other indices are explained on the TASE website indices section.

Regulation and controls

The TASE is regulated by the Securities Law (1968), and falls under the direct supervision of the Israel Securities Authority.

Clearing houses

Two clearing houses operate at the TASE as subsidiaries: