Considering a hub of financial activity, how many stories could the Tel Aviv Stock Exchange tell? Established in 1953, the Tel Aviv Stock Exchange is more than just a building. It is Israel’s only public stock exchange. It plays a vital role in the nation’s economy. The Tel Aviv Stock Exchange facilitates the trade of securities. It helps companies raise capital and manage debt.
Before 1953, securities trading occurred at the Anglo-Palestine Bank. This began in 1935. Mordechai Pinchas Hasson managed this early exchange. He was a key figure at Bank Leumi. Daily trading lasted only one hour then. Bankers who had immigrated from Germany played a role. Max Kollenscher and his brother Leo helped conceive the original idea.
The Tel Aviv Stock Exchange is regulated by the Securities Law of 1968. The Israel Securities Authority supervises its activities. This ensures fair practices. The Tel Aviv Stock Exchange experienced a crisis in 1983. The share prices of Israel’s four largest banks collapsed. The government nationalized the banks because of this. A third of the public’s investment was lost.
In 1993, trade in derivatives began. This added complexity to the market. By 1999, the Tel Aviv Stock Exchange had fully automated trading. It introduced the TACT system. In 2000, dual listing became easier. Companies listed in the United States could also list in Tel Aviv. This opened the door to international companies. Market makers began operating on the Tel Aviv Stock Exchange in 2005.
The Tel Aviv Stock Exchange indices underwent a reform in 2017. This aimed to improve stability. It broadened sectoral diffusion. It also encouraged foreign investment. That year, the Knesset passed a law for the Tel Aviv Stock Exchange’s demutualization. This turned it into a for-profit company.
In 2018, the Nominee Company was established. It ensures proper registration of securities. It also facilitates payments. In 2019, trade in the Tel Aviv Stock Exchange shares commenced. As of 2021, the Tel Aviv Stock Exchange listed 473 companies. It also listed many series of corporate and government bonds. The exchange’s market capitalization for equities is significant. It stands at US$ 216 billion. The Tel Aviv Stock Exchange offers various financial products. Equities, bonds, and mutual funds are available.
The Tel Aviv Stock Exchange operates Sunday through Thursday. It does not operate on Fridays or Israeli holidays. The trading day is divided into phases. These include pre-opening, opening auction, and continuous trading. The Tel Aviv Stock Exchange plays a key role in Israel’s economy. It provides a platform for companies to grow. It offers investors diverse opportunities.
Today, the Tel Aviv Stock Exchange stands as a testament to Israel’s economic development. From its humble beginnings to its current status, the Tel Aviv Stock Exchange continues to evolve. It adapts to the ever-changing global market. The Tel Aviv Stock Exchange remains a central pillar of Israel’s financial landscape.