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TASE announces today that, starting on March 1, 2022, the public will be able to submit buying and selling orders during the continuous trading phase at significantly lower amounts compared to the current amounts: for shares included in the TA-35 Index, the minimal order size will be reduced from NIS 5,000 to only NIS 500 and for all other shares the minimal order size will be reduced from NIS 2,000 to only NIS 500.
The minimal size of an order is a parameter that determines the minimal quantity that may be included in a trading order submitted to TASE as part of the continuous trading phase. An order submitted during continuous trading phase for a quantity that is less than the minimal size of an order for that security is deemed invalid and is rejected.
This reform, of reducing the minimal order size during the continuous trading phase, will increase the involvement of private investors from among the public in the trading on TASE, by allowing the public to participate in all trading phases with “small" orders. This will create more trading opportunities and increase liquidity for the private investors that, naturally, are unable to frequently trade in high amounts.
This change is another step in TASE's strategy of opening up the capital market and making it accessible to the public. In the past two years, close to 280 thousand new trading accounts were opened on TASE, emphasizing the need to remove barriers and create more trading opportunities for the public.
The reduction of the minimal order size is also expected to benefit the passive industry, by enabling an accurate and better coverage through smaller share baskets, with reduced exposure to market risks.
