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The Board of Directors of TASE approved (December 24, 2020), a resolution that authorizes the CEO of TASE to determine a minimal size of an order for a security that differs from that calculated according to TASE rules. This step is intended to avoid situations where a minimal order size, while consistent with the rules, impedes proper trading.
The minimal size of an order is a parameter that determines the minimal trading unit that may be included in a trading order submitted to TASE as part of the continuous trading phase. A minimal size of an order is based on the financial value determined by the Board of Directors for each type of securities. 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.
In its meeting on November 5, 2020, the Board of Directors of TASE approved several amendments to the rules regarding the calculation of the minimal size of an order. These included, among others, the reduction of the minimal size of an order on the equity market from a quantity of securities amounting of NIS 2,000 to a quantity amounting to NIS 500. This step was intended to enhance liquidity and encourage trading, also in smaller amounts that have better appeal to the public.
The Board of Directors' current resolution authorizes the CEO of TASE to determine a minimal size of an order that differs from that prescribed by the rules, where he finds it necessary to ensure proper trading in a given security on a specific trading day. This resolution was made in light of past experience that in some cases a minimal size of an order, while consistent with the rules, may impede proper trading in a security.
In recent years, TASE has prioritized the enhancement of liquidity and the encouragement of investments by the public. Just last week, TASE reported that close to 135 thousand new accounts were created in 2020, compared to less than 100 thousand new accounts in 2019, with a 150% surge in the number of accounts opened in investment houses. TASE has also been investing considerable resources in its public relations and information activities, aiming to remove barriers and to improve the accessibility of the capital market to the Israeli public.
Within this framework, a few days ago TASE launched a new campaign, starring real people of various ages, occupations and locations across Israel that invest on TASE.
