Tel Aviv Stock Exchange

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Tel Aviv Stock Exchange

Tase redirects here. It can also mean "to use a taser
Taser

A Taser is an electroshock weapon that uses electrical current to disrupt voluntary control of muscles. Its manufacturer, Taser International, calls the effects "Neuromuscular junction incapacitation" and device's mechanism "Electro-Muscular Disruption technology" ....
on someone".

The Tel Aviv Stock Exchange (TASE) in Tel Aviv

Tel Aviv

Israel

Israel officially the State of Israel , is a country in the Middle East located on the eastern shore of the Mediterranean Sea. It borders Lebanon in the north, Syria in the northeast, Jordan in the east, and Egypt on the southwest, and contains geographically diverse features within its relatively small area....
only stock exchange

Stock exchange

A stock exchange, securities exchange or bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and trader s, to trade stocks and other security ....
.

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, meats and various other food items and crafted goods....
for trading securities in Israel. It plays a major role in the Israeli economy

Economy of Israel

The economy of Israel is a diversified mixed economy with substantial state ownership and a rapidly developing high-tech sector. Poor in natural resources, Israel depends on imports of petroleum, coal, food, uncut diamonds, other production inputs, and military equipment....
. The precursor to the TASE was the Exchange Bureau for Securities, founded by the Anglo-Palestine Bank

Bank Leumi

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Encyclopedia

The Tel Aviv Stock Exchange (TASE) in Tel Aviv

Tel Aviv

Israel

Stock exchange

Public market

Economy of Israel

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 Zionism movement to promote the industry, construction, agriculture, and infrastructure of Palestine....
) 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

Tel Aviv

Tel Aviv-Yafo , usually Tel Aviv, is the List of largest cities and second largest cities by country List of cities in Israel in Israel, with an estimated population of 390,100....
in 1953. In 1983 the exchange moved to its current location in Tel Aviv.

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 fund

Exchange-traded fund

An exchange-traded fund is an collective investment scheme traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day....
s (ETFs), 60 government bond

Government 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 and invests it in stocks, Bond , short-term money market instruments, and/or other security ....
s.

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

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 government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
or London

London

London is the capital of both England and the United Kingdom, and the most populous municipality in the European Union. An important settlement for two millennia, History of London goes back to its founding by the Roman Empire....
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

Trading System

In electronic financial markets, trading system, also known as algorithmic trading, is the use of computer programs for entering trading orders with the computer algorithm deciding on certain aspects of the order such as the timing, price, quantity of order....
with real-time 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 issued by national governments in foreign currencies are normally referred to as sovereign bonds....
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 5:30 p.m. local time (GMT

Greenwich Mean Time

Greenwich Mean Time is a term originally referring to solar time at the Royal Observatory, Greenwich in Greenwich, London. It is regularly used to refer to Coordinated Universal Time when this is viewed as a time zone, especially by bodies connected with the United Kingdom, such as the BBC World Service, the Royal Navy, the Met Office an...
+2), overlapping the American markets for a full hour (9:30 a.m. to 10:30 a.m. EST). 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 and/or to repay the principal at a later date, termed Maturity ....
and Treasury bills

Treasury security

Treasury securities are government bond issued by the United States Department of the Treasury through the Bureau of the Public Debt. They are the debt financing instruments of the U.S....
are traded between 9:30 a.m. and 5:30 p.m. Derivatives

Derivative (finance)

Derivatives are financial contracts, or financial instruments, whose values are derived from the value of something else . The underlying on which a derivative is based can be an asset , an index , or other items ....
trading runs from 9:30 a.m to 5:30 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

New York Stock Exchange is a stock exchange based in New York City, New York. It is the largest stock exchange in the world by United States dollar market capitalization of its listed companies' Security ....
or NASDAQ

NASDAQ

The NASDAQ is an United States stock exchange. It is the largest Electronic trading screen-based Stock trading market in the United States....
, but also the American Stock Exchange

American Stock Exchange

NYSE Alternext U.S., formerly known as the American Stock Exchange is an United States stock exchange situated in New York City. AMEX was a mutual organization, owned by its members....
and London Stock Exchange

London Stock Exchange

The London Stock Exchange or LSE is a stock exchange located in London, United Kingdom. Founded in 1801, it is one of the largest stock exchanges in the world, with many overseas listings as well as British companies....
.

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

Teva Pharmaceutical Industries

Teva Pharmaceutical Industries Ltd. , is an international pharmaceutical company headquartered in Petah Tikva, Israel. It specializes in generic drug and proprietary pharmaceuticals and active pharmaceutical ingredients....
($7.8B), 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....
($2.5B), Bank Hapoalim

Bank Hapoalim

Bank Hapoalim is the largest Israeli bank. The bank was established in 1921 by the World Zionist Organization and the Histadrut . The bank operates several international branches, in the USA , in Canada, Europe , South America, and the Cayman Islands....
($1.5B) and 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 Zionism movement to promote the industry, construction, agriculture, and infrastructure of Palestine....
($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

Market capitalization

Market capitalization/capitalisation is a measurement of corporate or economic wealth equal to the share price times the number of shares outstanding of a public company....
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

Benchmark

The term benchmark originates from the chiseled horizontal marks that surveyors made, into which an angle-iron could be placed to bracket a levelling rod, thus ensuring that the levelling rod can be repositioned in exactly the same place in the future....
TA-25 index closed at a record 1141.76.

TASE links to the U.S. markets with a direct link with DTC, a subsidiary of the Depository Trust & Clearing Corporation

Depository Trust & Clearing Corporation

The Depository Trust & Clearing Corporation , based primarily at 55 Water Street in New York City, is the world?s largest post-trade financial services company....
, 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.

Indices

The major stock market indices

Stock 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 to benchmark the performance of portfolios such as mutual funds....
of the TASE include:

TA-25 - TASE's flagship index, listing TASE's 25 largest stocks by market cap. Also called the Ma'of.
TA-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 (replaced the Yeter-30)
Yeter - All other TASE's stocks which are not included in TA-100
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
Finance

The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important....
sector stocks
Tel-Div 20 - Index of the 20 issues listed on the TA-100 with the highest annual dividend
Dividend

Dividends 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 paid to the shareholders as a dividend....
yield.
Maala - socially responsible investing
Socially responsible investing

Socially responsible investing, also known as sustainable investing or ethical investing, describes an investment strategy which seeks to maximize both financial return and social good....
index
Tel-Bond 20 - consists of the 20 corporate bonds, fixed-interest
Fixed interest

A 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 CPI
Consumer price index

A consumer price index is a measure of the average price of consumer goods and services purchased by households. It is a price index determined by measuring the price of a standard group of goods meant to represent the typical market basket of a typical urban consumer....
-linked, with the highest market cap among all the bonds traded on the TASE.

These and other indices are explained on the .

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

Israel Securities Authority

The Israel Securities Authority is the national Financial regulation of Israel. Its chairman since 2002 is Moshe Tery....
. 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....
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 clearinghouses

Clearing house (finance)

A clearing house is a financial services company that provides clearing and settlement services for financial transactions, usually on a futures exchange, and often acts as central counterparty....
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
Citigroup

Citigroup Inc., doing business as Citi, is a major United States financial services company based in New York City. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate Travelers Group on April 7, 1998....
.

The Derivatives Clearing House was established in 1993 with the opening of the TASE derivatives market
Derivatives market

The derivatives markets are the financial markets for derivative s. The market can be divided into two, that for derivative #Exchange traded derivatives and that for derivative #Over-the-counter derivatives....
. It is responsible for clearing options and futures traded on the TASE.

External links

- Nasdaq.com, 14 September 2006