Tel Aviv Stock Exchange
Encyclopedia
The Tel Aviv Stock Exchange (TASE; ; colloquially known as the Bursa) in Tel Aviv
is Israel's
only stock exchange
.
The 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 fund
s (ETFs), 60 government bond
s, 500 corporate bond
s, and more than 1000 mutual fund
s.
There are 29 members that make up TASE. The list of members indicates that one of the members is a candidate.
(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.
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.
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.
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.
In February 2007 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.
In November 2007 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. NASDAQ at the time had 70 Israeli companies listed on the exchange, with a combined global market cap of over US$60 billion.
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 fund
s (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. 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.
In May 2008 Northern Trust
started the first US exchange-traded fund on the NYSE based on TASE's benchmark, the TA-25 Index.
In July 2008 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.
In November 2008 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.
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.
information. All shares, convertibles, treasury bills, government bond
s, and derivatives are traded via TACT, the TASE’s fully automated trading system.
Trading in shares takes place Sunday through Thursday between 8:30 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. 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
.
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 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.
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. The ETF that tracks the performance of Israel's overall market is the iShares
MSCI Israel Capped Investable Market Index Fund, or EIS .
of the TASE include:
These and other indices are explained on the TASE website indices section.
. Internal regulations include automatic rejection of a trade at a price that deviates more than 35% from the last trade for that security, circuit breaker
s, 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.
operate at the TASE as subsidiaries:
Tel Aviv
Tel Aviv , officially Tel Aviv-Yafo , is the second most populous city in Israel, with a population of 404,400 on a land area of . The city is located on the Israeli Mediterranean coastline in west-central Israel. It is the largest and most populous city in the metropolitan area of Gush Dan, with...
is Israel's
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
only stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
.
The TASE is the only public market
Public market
Public markets are markets, in public spaces, where independent merchants can sell their products to the public. Typical products sold at public markets include fresh produce and baked goods, locally raised meats and dairy products, and various other food items and handcrafted goods...
for trading securities in Israel. It plays a major role in the Israeli economy
Economy of Israel
The economy of Israel is a technologically advanced market economy, including a rapidly-developing high-tech and service sectors. As of 2010, Israel has the 24th largest economy in the world, and ranks 15th among 169 world nations on the UN's Human Development Index, which places it in the category...
.
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 fund
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
s (ETFs), 60 government bond
Government bond
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country...
s, 500 corporate bond
Corporate bond
A corporate bond is a bond issued by a corporation. It is a bond that a corporation issues to raise money in order to expand its business. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after their issue date...
s, and more than 1000 mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
s.
There are 29 members that make up TASE. The list of members indicates that one of the members is a candidate.
History
The precursor to the TASE was the Exchange Bureau for Securities, founded by the Anglo-Palestine BankBank Leumi
Bank Leumi is an Israeli bank. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist movement to promote the industry, construction, agriculture, and infrastructure of Palestine.-History:...
(which became Bank Leumi
Bank Leumi
Bank Leumi is an Israeli bank. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist movement to promote the industry, construction, agriculture, and infrastructure of Palestine.-History:...
) 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.
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.
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
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
, and HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
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. 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.
In February 2007 TASE and the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
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.
In November 2007 TASE and The Nasdaq Stock Market signed a memorandum of understanding
Memorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...
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. NASDAQ at the time had 70 Israeli companies listed on the exchange, with a combined global market cap of over US$60 billion.
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 fund
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
s (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. 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.
In May 2008 Northern Trust
Northern Trust
Northern Trust Corporation is an international financial services company headquartered in Chicago, Illinois, USA. It provides investment management, asset and fund administration, fiduciary and banking services through a network of 85 offices in 18 U.S. states and 12 international offices in North...
started the first US exchange-traded fund on the NYSE based on TASE's benchmark, the TA-25 Index.
In July 2008 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.
In November 2008 TASE and the Shanghai Stock Exchange
Shanghai Stock Exchange
The Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen 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.
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.The Dual Listing Law that took effect in October 2000 enables companies listed in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
or London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
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.
Trading
The TASE has a computerized trading system with real-timeReal-time operating system
A real-time operating system is an operating system intended to serve real-time application requests.A key characteristic of a RTOS is the level of its consistency concerning the amount of time it takes to accept and complete an application's task; the variability is jitter...
information. All shares, convertibles, treasury bills, government bond
Government bond
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country...
s, and derivatives are traded via TACT, the TASE’s fully automated trading system.
Trading in shares takes place Sunday through Thursday between 8:30 a.m. and 4:30 p.m. local time (GMT
Greenwich Mean Time
Greenwich Mean Time is a term originally referring to mean solar time at the Royal Observatory in Greenwich, London. It is arguably the same as Coordinated Universal Time and when this is viewed as a time zone the name Greenwich Mean Time is especially used by bodies connected with the United...
+2). Bonds
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
and Treasury bills
Treasury security
A United States Treasury security is government debt issued by the United States Department of the Treasury through the Bureau of the Public Debt. Treasury securities are the debt financing instruments of the United States federal government, and they are often referred to simply as Treasuries...
are traded between 9:30 a.m. and 4:30 p.m. Derivatives
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
trading runs from 9:30 a.m to 4:30 p.m. 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
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
or NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
, but also the American Stock Exchange
American Stock Exchange
NYSE Amex Equities, formerly known as the American Stock Exchange is an American stock exchange situated in New York. AMEX was a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange. On January 17, 2008, NYSE Euronext announced it would acquire the...
and London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
.
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
Teva Pharmaceutical Industries
Teva Pharmaceutical Industries Ltd. , is an international pharmaceutical company headquartered in Petah Tikva, Israel. It specializes in generic and proprietary pharmaceuticals and active pharmaceutical ingredients...
($51.5B), Israel Chemicals
Israel Chemicals
Israel Chemicals Ltd. , also known as ICL, is a multi-national Israeli manufacturing concern that develops, produces and markets fertilizers, metals and other special-purpose chemical products.-History:...
($14.3B), Bank Leumi
Bank Leumi
Bank Leumi is an Israeli bank. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist movement to promote the industry, construction, agriculture, and infrastructure of Palestine.-History:...
($6.1B), and Bezeq
Bezeq
Bezeq, the Israeli company for communications, is a telecommunications provider in Israel.Until the mid-first decade of the 21st century when it was owned by the Israeli government, Bezeq had a monopoly on landline telephony and Internet access infrastructure...
($6.0B). Daily turnover of shares and convertibles in 2009 was USD 432 million, $1,035M of bonds and ETNs, $163M of T-bills, and 252,000 options and futures contracts. Total market cap
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
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.
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. The ETF that tracks the performance of Israel's overall market is the iShares
IShares
iShares are a family of exchange-traded funds managed by BlackRock. The first iShares were known as WEBS but were since rebranded.Each iShares fund tracks a bond or stock market index...
MSCI Israel Capped Investable Market Index Fund, or EIS .
Indices
The major stock market indicesStock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
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 IndexTA-100 IndexThe TA-100 Index, typically referred to as the Tel Aviv 100, is a stock market index of the 100 most highly capitalised companies listed on the Tel Aviv Stock Exchange . The index began on 1 January 1992 with a base level of 100...
– 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 IndexTA-100 IndexThe TA-100 Index, typically referred to as the Tel Aviv 100, is a stock market index of the 100 most highly capitalised companies listed on the Tel Aviv Stock Exchange . The index began on 1 January 1992 with a base level of 100...
(replaced the Yeter-30) - Mid Cap TA – All other TASE's stocks which are not included in TA-100 IndexTA-100 IndexThe TA-100 Index, typically referred to as the Tel Aviv 100, is a stock market index of the 100 most highly capitalised companies listed on the Tel Aviv Stock Exchange . The index began on 1 January 1992 with a base level of 100...
- TA Composite - The index includes all the shares traded on the exchange
- TA BlueTech-50 IndexTA BlueTech-50 IndexThe TA BlueTech-50 Index is a stock market index of the 50 most highly capitalised Information technology and Biotechnology companies listed on the Tel Aviv Stock Exchange...
- 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 FinanceFinance"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
sector stocks - Tel-Div 20 – Index of the 20 issues listed on the TA-100 IndexTA-100 IndexThe TA-100 Index, typically referred to as the Tel Aviv 100, is a stock market index of the 100 most highly capitalised companies listed on the Tel Aviv Stock Exchange . The index began on 1 January 1992 with a base level of 100...
with the highest annual dividendDividendDividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
yield. - Maala – socially responsible investingSocially responsible investingSocially responsible investing , also known as sustainable, socially conscious, or ethical investing, describes an investment strategy which seeks to consider both financial return and social good....
index - Tel-Bond 20 – consists of the 20 corporate bonds, fixed-interestFixed interestA fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments...
and CPIConsumer price indexA consumer price index measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor Statistics as "a measure of the average change over time in the prices paid by urban consumers for a market basket of...
-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.
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 AuthorityIsrael Securities Authority
The Israel Securities Authority is the national securities regulator of Israel.-Mandate:Its mandate is to protect the interests of the public investing in securities, as stipulated in the Law...
. Internal regulations include automatic rejection of a trade at a price that deviates more than 35% from the last trade for that security, circuit breaker
Trading curb
A trading curb, also known as a circuit breaker, is a point at which a stock market will stop trading for a period of time in response to substantial drops in value.-Circuit breakers:...
s, 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.
Clearinghouses
Two clearinghousesClearing house (finance)
A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions...
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 CitigroupCitigroupCitigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
.
- The Derivatives Clearing House was established in 1993 with the opening of the TASE derivatives marketDerivatives marketThe derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets....
. 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 – Nasdaq.com, 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