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Tel Aviv Stock Exchange
Ehad Haam stock exchange.JPG
Type Stock Exchange
Location Tel Aviv, Israel
Currency Israeli new sheqel

The Tel Aviv Stock Exchange (TASE; Hebrew: הבורסה לניירות ערך בתל אביב‎; colloquially known as the Boursa) 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 660 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.

There are 29 members that make up TASE. The list of members indicates that one of the members is a candidate.



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.[1]

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.[2]

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 end of year foreign investment banks UBS, Deutsche Bank, and HSBC had become members of TASE.[3]

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.[4]

In February 2007 TASE and the London Stock Exchange and 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.[5]

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.[6] NASDAQ at the time had 70 Israeli companies listed on the exchange, with a combined global market cap of over US$60 billion. [7][8]

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.[9] 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.[10]

In May 2008 Northern Trust started the first US exchange-traded fund on the NYSE based on TASE's benchmark, the TA-25 Index.[11]

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.[12]

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.[13]


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.[1]


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 8:30 a.m. and 4:30 p.m. local time (GMT+2), overlapping the American markets for a full hour (9:30 a.m. to 10:30 a.m. EST). 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.[2][3] 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.[4]

Between 2003 and 2006, share prices on the TASE rose sharply. The General Index of shares and convertible securities (which is comprised 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 July 1, 2007, TASE's largest stocks by market cap were Teva Pharmaceutical Industries ($7.8B), Israel Chemicals ($2.5B), Bank Hapoalim ($1.5B), and Bank Leumi ($1.4B). Daily turnover of shares and convertibles in 2006 was USD 326 million, $387M of bonds, $179M of T-bills, and 335M of options and futures. Total market cap at the end of 2006 was $161B shares and convertibles, $98.9B government and corporate bonds, and $20.9B T-bills, a total of $281.2B. On July 4, 2007, TASE's benchmark TA-25 index closed at a record 1,141.76.

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.[5]


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)
  • Yeter - All other TASE's stocks which are not included in TA-100 Index
  • Tel-Tech 15 - TASE's 15 largest high-tech stocks
  • 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.
  • Maala - socially 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.

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.[5]


Two clearinghouses 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.


  1. ^ Standard & Poor's - The Tel Aviv Stock Exchange
  2. ^ TASE Site - Trading Schedule
  3. ^ TASE Site - TACT Overview
  4. ^ TASE Site - Dual Listing
  5. ^ a b SEC Info - Israel State of - 18-K/A - For 12/31/06 - EX-99.D

External links

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