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Tel-Aviv Stock Exchange

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Tel-Aviv Stock Exchange

Coordinates: 32°3′52.40″N 34°46′27.50″E / 32.0645556°N 34.7743056°E / 32.0645556; 34.7743056

Tel Aviv Stock Exchange
Type Stock Exchange
Location Tel Aviv, Israel
Founded1953 (precursor 1935)
Owner15 banks and 12 investment houses
Key peopleRan Malka, Chairman (acting)
Ester Levanon, Chief Executive Officer
CurrencyIsraeli new shekel
No. of listings611 companies listing equities,

653 series of corporate bonds,
33 series of government bonds,
416 index-tracking products,

1,231 mutual funds
MarketCapEquities: US$ 216 billion;
Bonds: US$ 196 billion
Volume546 million US$ daily (2010)

The Tel Aviv Stock Exchange (TASE; Hebrew: הבורסה לניירות ערך בתל אביב‎; colloquially known as the Bursa[1]) in Tel Aviv is Israel's only stock exchange.

TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy. TASE lists some 622 companies, about 60 of which are also listed on stock exchanges in other countries. TASE also lists some 180 exchange-traded funds (ETFs), 60 government bonds, 500 corporate bonds, and more than 1000 mutual funds.

In 2009, the trading day was set at 9:30 AM–4:30 PM. At a news conference in December 2012, CEO Ester Levanon announced that trading would be extended by an hour to bring working hours closer to those of the European market.[2] Since June 2013, the trading day has been 9:30 AM–4:30 PM on Sundays and 9:30 AM–5:30 PM Monday to Thursday.


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 1983 the exchange moved to its current location in Tel Aviv.

In 1993 TASE had the third largest number of IPOs of all the world stock exchanges.[3]

In 1999 the exchange completed its turnover to fully computerized trading, with the change orchestrated by Esther Levanon, who came to the exchange in January 1986 after 12 years with the Shin Bet, having set up and run the security agency's computer department after her PhD work at the Technion. She later became CEO of the exchange.[4]

In 2005, non-Israeli investment in TASE reached an all-time high of NIS 2 billion. Average daily share volume reached a record high of NIS 1 billion, double that of 2000 and 50% more than in 2004. The bond market saw a record high of NIS 1.3 billion daily average turnover, 40% more than in 2004. Non-governmental bonds reached a daily average of NIS 220 million. Share issuance volume reached NIS 12.2 billion, around the same level of 2000 and 70% above the level of 2004. The TA-25 increased 34%. By the end of the year foreign investment banks UBS, Deutsche Bank, and HSBC had become members of TASE.[5]

In September 2006, TASE bought out the shares of TASE Clearing House from TASE members, making it a fully owned subsidiary. The TASE Clearing House maintained a NIS 620 million risk fund at the time, as a primary cushion of protection from potential risks, in addition to the NIS 30 million in shareholders equity.[6]

In 2007, 56 new companies raised more than $2.5 billion in initial public offerings on the exchange, among them 20 hi-tech firms. Average daily share trading volume set new records, averaging $500 million a day, a 55% jump over 2006. Bond trading volume increased more than 100% from 2006 levels, to $800 million. Over 2007, the market for exchange-traded funds (ETFs) grew with the addition of 150, bringing the total number of listed ETFs to 240, representing 18% of the trading volume in shares and 10% of the trading volume in non-government bonds. The public's holdings in ETFs reached more than $6 billion. The Tel Bond-20 index was also launced, with the value of index products totalling $900 million.[7] For the four years 2004–07, the TA-25 rose 175% – more than four times the figure for New York's markets for that timeframe.[4]

In May 2008 Northern Trust started the first US exchange-traded fund on the NYSE based on TASE's benchmark, the TA-25 Index.[8]


Between 2003 and 2006, share prices on the TASE rose sharply. The General Index of shares and convertible securities (which is composed of all shares and convertible securities tradable on the TASE) increased in USD terms by 15.3% in 2006, compared with an increase of 24.3% in 2005 and an increase of 19.5% in the General Index in 2004.

During 2006, the Tel Aviv 100 Index and the Tel Aviv 25 Index increased in USD terms by 22.0% and 22.6% respectively, compared with an increase of 21.1% and 24.7%, respectively, in 2005. The average daily trading for equity securities increased to $326 million during 2006, compared with $223 million in 2005 and $147 million in 2004.

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.[9]

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.

International agreements

In February 2007 the TASE and the London Stock Exchange signed a memorandum of understanding to formalise existing ties between the two organisations, establish regular meetings between senior executives, and information in order to facilitate orderly trading of the shares of companies admitted to both markets. At the time, 50 Israeli companies were listed on the London Stock Exchange's Main Market and Alternative Investment Market (AIM). Of these, 36 had joined in the prior two years.[10]

In November 2007 the TASE and The Nasdaq Stock Market signed a memorandum of understanding to formalize the relationship between the two markets developing channels of communication between the two markets and working to facilitate stronger trading of company shares admitted on both markets.[11] NASDAQ at the time had 70 Israeli companies listed on the exchange, with a combined global market cap of over US$60 billion.[12][13]

In July 2008 the TASE and NYSE Euronext entered into a memorandum of understanding to increase the number of companies listed in both the US and Israel, and boost trading. At the time seven Israeli companies traded on the NYSE. Dual listings trading volume of NYSE Israeli companies had increased 31% annually since 2001.[8]

In November 2008 the TASE and the Shanghai Stock Exchange signed a memorandum of understanding, pursuant to which they agreed to exchange delegations, to deepen Israeli businessmens' knowledge of the Chinese market and Shanghai Stock Exchange, and vice versa.[14]

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.[15]


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.

The Dual Listing Law that took effect in October 2000 enables companies listed in the United States or London to dual-list on the TASE without any additional regulatory requirements. As of December 31, 2006, 39 Israeli companies have dual-listed on the TASE, in compliance with this framework.

As of 2007, the total market value of all listed equity securities was $202.7 billion, compared with $161.4 billion in 2006, $122.6 billion in 2005 and $92.1 billion in 2004.[16]


The TASE has a computerized trading system with real-time information. All shares, convertibles, treasury bills, government bonds, and derivatives are traded via TACT, the TASE’s fully automated trading system. Trading in shares takes place Sunday through Thursday between 9:00 a.m. and 4:30 p.m. local time (GMT+2). Bonds and Treasury bills are traded between 9:30 a.m. and 4:30 p.m. Derivatives trading runs from 9:30 a.m to 4:30 p.m.[17][18] 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.[19]

During regular trading hours the TASE can process orders of four varieties: LMT, MKT, FOK, and IOC.[20]

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.

Active involvement of foreign investors in the TASE began in 1994. In 2006, international holdings increased to 11.6% of the total market capitalization of the shares and convertible securities tradable on the TASE, compared to 11.4% in 2005 and 10.0% in 2004.[21] The ETF that tracks the performance of Israel's overall market is the iShares MSCI Israel Capped Investable Market Index Fund, or EIS ().[22]


The major stock market indices of the TASE include:

  • TA-25 Index – TASE's flagship index, listing TASE's 25 largest stocks by market cap. Also called the Ma'of.
  • TA-100 Index – TASE's 100 largest stocks
  • TA-75 – Stocks on TA-100 which are not included in TA-25
  • Mid-Cap 50 – The largest 50 shares which are not included in TA-100 Index (replaced the Yeter-30)
  • Mid Cap TA – All other TASE's stocks which are not included in TA-100 Index
  • TA Composite - The index includes all the shares traded on the exchange
  • TA BlueTech-50 Index - The index is composed of 50 shares with the highest market capitalization that are part of the TA-Technology Index and the TA-Biomed index. The Index replaces the Tel-Tech Index that ceased being published in April 2011.
  • TA-Technology Index – The index is composed of all technology shares on TASE
  • TA-Biomed Index - The index composed of all the Biomed sector shares on TASE
  • TA-Oil & Gas Index is composed of all shares included in oil & gas exploration sector shares on TASE
  • TA Real-Estate 15 – TASE's 15 largest real-estate sector stocks
  • TA Finance 15 – TASE's 15 largest Finance sector stocks
  • Tel-Div 20 – Index of the 20 issues listed on the TA-100 Index with the highest annual dividend yield.
  • Maalasocially responsible investing index
  • Tel-Bond 20 – consists of the 20 corporate bonds, fixed-interest and CPI-linked, with the highest market cap among all the bonds traded on the TASE.

These and other indices are explained on the TASE website indices section.[23]

Regulation and controls

The TASE is highly regulated, both internally and externally. The exchange is regulated by the Securities Law (1968), and falls under the direct supervision of the Israel Securities Authority. Internal regulations include automatic rejection of a trade at a price that deviates more than 35% from the last trade for that security, circuit breakers, and 45-minute halting of trade in a company’s securities on the day that the company publishes price-sensitive information, so that the information can be widely disseminated. The TASE's rules govern membership, registration of securities, conditions for suspending trading, and obligations of listed companies.[21]

Clearing houses

Two clearing houses operate at the TASE as subsidiaries:

  • The TASE Clearing House was established in 1966. It clears all securities transactions executed on and off the stock exchange and carries out income payments on behalf of companies. The TASE Clearing House also operates a Global Clearing, Settlement, and Custody Services unit in collaboration with Citigroup.
  • The Derivatives Clearing House was established in 1993 with the opening of the TASE derivatives market. It is responsible for clearing options and futures traded on the TASE.


External links

  • Stock Market
  • Tel Aviv Stock Exchange website
  • About Tel Aviv Stock Exchange
  • Tel Aviv Stock Exchange Corporate Actions System
  • Tel Aviv Stock Exchange Disclosure System (Hebrew Only)
  • Tel Aviv Stock Exchange – Market Data
  • Tel Aviv Stock Exchange – Trading System
  • Tel Aviv Stock Exchange – Clearing & Settlement
  • Tel Aviv Stock Exchange – Listed Companies
  • Ester Levanon, CEO of the Tel Aviv Stock Exchange, presides over the Market Close –, September 14, 2006
  • MSCI upgraded Israel from an emerging market to a developed market, interview with Ester Levanon, CEO of the Tel aviv stock exchange

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