Tel-Aviv Stock Exchange Presents Strategic Plan

The management of the Tel-Aviv Stock Exchange (TASE) have presented the board of directors with a strategic plan for the development of the exchange. The plan details the actions that need to be taken by the TASE and the governmental authorities in order to increase the quality of the Israeli capital market. The various courses of action described in the plan are intended to enhance TASE's position as a developed market that is capable of successfully competing with the world's other sophisticated markets. TASE's main objective is to streamline the trading in cash and futures markets. Presently all shares, bonds and T-bills are traded via the fully automated TACT (Tel Aviv Continuous Trading) system which will be adapted to derivatives trading in October 1999. The integrated system will enable continuous trading in options and futures contracts. Once it is fully run-in, it will make it possible to diversify the range of derivatives offered to investors. The Exchange regulations will be updated in order to admit remote members, and to formulate reciprocal agreements with overseas stock markets. The obligations imposed on current members will also be updated and a new legal framework for clearing activity is to be applied. The TASE will facilitate securities lending by making certain adjustments to the Clearing House operating procedures. The processing of trades in dual-listed shares will be enhanced as well in view of the aspired dual listing of Israeli companies, presently traded only abroad. The TASE will endeavor to facilitate the listing of new high growth companies, in the stage prior to their listing on foreign stock markets. Other planned measures include additional decreases in fees for the Exchange services and the extension of trading hours, which will provide an overlap between trading times in Tel Aviv and New York. TASE's Managing Director, Saul Bronfeld, said that the implementation of the strategic plan would spur the growth in foreign investment on the TASE. Bronfeld stressed the importance of dual listing: "Making it easier for Israeli companies, that are currently traded only in the U.S. exchanges, to list on the TASE as well, will lead to a significant increase in the supply of high quality shares and in total turnover and liquidity." The Tel-Aviv Stock Exchange (TASE) was founded in 1953. The Exchange is owned by its 28 member firms and is closely supervised by the Israel Securities Authority, whose main mission is protecting investors. The TASE provides highly-advanced fully-electronic trading services for shares, bonds and Treasury-bills and it operates two trading floors for derivatives. All trades are cleared and settled by the TASE clearing House. The TASE offers the international investor the appealing combination of attractive investment opportunities and developed market services. Visit the TASE Web site today, at www.tase.co.il