The Tel Aviv Stock Exchange (TASE) continues to expand Israel’s derivatives market with the launch of options on non-linked shekel-denominated government bonds. The new options were designed by a joint team of TASE, the Ministry of Finance, and Prof. Dan Galai. Trading is scheduled to commence on 10 November 2011.
TASE is making preparations for the designation of market makers for these new derivative products, in order to provide liquidity of the market from its inception.
The new options augment the tools at the disposal of bond investors, broaden the spectrum of investment strategies in fixed income instruments, and enable investors to more effectively hedge their investments.
The options will be launched on two series of government bonds: series 0120, maturing in January 2020 and series 0217, maturing in February 2017.The terms of the options can be summarized as follows.
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