DEFINITION of Tel Aviv Stock Exchange (TASE)
The Tel Aviv Stock Exchange (TASE) is a securities market located in Tel Aviv, Israel. It is a private company and Israel’s sole stock exchange. The TASE trades in stocks, convertible securities, corporate and government bonds, short-term certificates and a variety of derivatives. It plays a primary role in the growth and development of Israel's economy.
BREAKING DOWN Tel Aviv Stock Exchange (TASE)
In the 1930s, following an immigration of Jewish bankers who fled Nazi Germany, securities trading began in Palestine. The Exchange Bureau for Securities was established in 1935 in a branch of the British Anglo-Palestine Bank, before Israel was a state. This small exchange traded stocks for only an hour each day. After Israel became a state in 1948, its securities market became formalized in 1953 as the Tel Aviv Stock Exchange (TASE). Trading continued at the bank’s offices until 1960, when the stock exchange moved to a more permanent residence where it remained until 1983.
Trading volumes significantly increased in the late 1970s and early 1980s, and in 1982 the TASE had a record year with stock prices that rose by 113%. However, in 1983, the stock boom ended in a crash and Israel's bank stock bubble burst. Following the crash, the TASE closed for two weeks.
TASE’s major index since 1992 has been the TA-25, a capitalization-weighted index of the exchange's largest 25 stocks. The TASE has used a fully electronic trading system for all trades since 1999. Dual listing began in 2000, as did the issuance of exchange-traded notes (ETNs). The TASE moved to a new location at Ahuzat Bayit Street in 2014.
The TASE is open Sunday through Thursday to allow a slight overlap with U.S. market hours. Its regulatory body is the Israel Securities Authority (ISA) and its subsidiaries include the TASE Clearing House (established 1966), the Maof Clearing House (established 1993) and the Nominee Company (established 2018).