Tel Aviv Stock Exchange Derivatives Trading Doubles After Move To TACT

The Tel Aviv Stock Exchange (TASE) announced that trading on the TASE derivatives market has doubled since the introduction of the fully automated TACT-Derivatives system on October 14. The average daily volume of TA 25 index options in the first week of automated trading surged to more than 60,000 contracts, twice the daily average achieved on the open-outcry trading floor during the first half of October. Saul Bronfeld, TASE Managing Director, said the sharp increase in trading proves that all users of TACT-D have successfully adapted to and accepted the new system. "The market has accepted TACT-D very quickly, and the traders are extremely satisfied with the system's performance," Bronfeld said. "We expect further increases in trading volumes in coming months as the market gets into high gear." Mr. Bronfeld added that the successful startup of TACT-D paves the way for the Exchange to launch new derivative products during 2000. These include contracts on short-term interest rates and bond yields. International investors, who are active traders on the TASE equity market, are showing increasing interest in the newly automated derivatives market, which is now run according to mainstream order-driven trading systems. The TASE's current 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. 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.