Tel Aviv Stock Exchange Automates Derivatives Trading And Extends Trading Hours

The Tel Aviv Stock Exchange (TASE) announced that electronic trading in derivatives, through the TACT system, will begin on Thursday, October 14, three days ahead of schedule. The Exchange will celebrate the closing of the remaining two trading floors for derivative products on Wednesday, October 13. The Tel Aviv Continuous Trading, or TACT, system is an order-driven, fully automated open system that is currently used for trading shares, bonds and Treasury bills. The development of a new version of TACT formed a unique integrated trading platform for the equity, fixed-income and derivatives markets. Daily trading will begin at 9:30 a.m., 30 minutes earlier than the TA 25 derivative floor's current opening and one hour earlier than the current opening of the Shekel-Dollar floor. The trading day will end at 4:15 p.m. The computerized system enables continuous trading according to mainstream principles common to the world's technologically advanced exchanges. Besides regular limit orders, the TASE will introduce two new kinds of trading orders. One, called a Fill or Kill order, will not remain in the order book if it is not immediately and fully executed. The other, called an Immediate or Cancel order, may be only partly executed but also will not remain in the order book. The TASE's derivative products are options and futures on the TA 25 index and on the Shekel-Dollar exchange rate. These products have been traded in the open-outcry method since they were introduced to the market in 1993 and 1994. By computerizing trading, the Exchange will be able to launch new futures contracts on on fixed income instruments during 2000. Mr. Saul Bronfeld, the TASE's Managing Director, said that "the closing of the TASE's last two trading floors marks the completion of the TACT revolution. We believe that TACT-Derivatives will follow the success of the computerization of both the equity and fixed-income markets. The system has contributed to increased trading volume and market transparency. We hope that TACT-D will attract new international investors, who are heavily involved in the equity market, to the derivatives market as well." Ms. Ester Levanon, TASE's Executive Vice President, added that "the Exchange is committed to continuing its investment in technological improvements of its trading system. Once all securities trade on one platform, the TASE will maintain its focus on cutting-edge technology to facilitate trading." The Tel Aviv Stock Exchange, founded in 1953, is owned by its 28 member firms and is regulated by the Israel Securities Authority. The Exchange provides a highly advanced electronic trading system for shares, bonds and Treasury bills. All trades are cleared and settled by the TASE Clearing House. The TASE offers international investors a combination of attractive investment opportunities and a full complement of market services, including an elaborate and user-friendly website at www.tase.co.il.