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The Tel Aviv Stock Exchange (TASE) is pleased to announce that the FTSE Group (“FTSE”), has promoted and reclassified Israel’s stock market from Advanced Emerging to Developed status.
FTSE made the announcement as part of its annual country classification review before European markets opened this morning. The review examined progress made by a series of international markets on the FTSE Watch List. In addition to Israel, these Watch List countries are China (A shares), Greece, Hungary, Pakistan, Poland, South Korea and Taiwan.
FTSE's Policy Group, which oversees the market classification review, based its decision on recommendations from FTSE and its independent expert classification committee. These recommendations are based on progress made by the Watch List countries, since the last review was undertaken in September 2006.
Country classification criteria is based on economic as well as quality of market indicators. Areas examined by the Policy Group include Israel’s regulatory environment, custody and settlement arrangements, the efficiency of the dealing landscape and the derivatives market.
Imogen Dillon Hatcher, Managing Director, FTSE Europe Middle East and Africa, said “We are pleased to welcome Israel’s capital markets to Developed Status. Israel has a strong investment environment, which has made significant changes to its regulations, investment procedures and systems enhancing international investors access to its market. Israel will be promoted to Developed status in FTSE indices from June 2008.”
Ester Levanon, Chief Executive Officer, commented: “This is an important day not only for Israel’s capital markets but for the wider Israeli economy as a whole. In addition, on behalf of the Tel Aviv Stock Exchange we are truly honoured to have been invited to London to speak at the FTSE Country Classification Event itself.
“This promotion to developed market status places Israel’s stock market on a par with the leading stock markets of the EMEA region. Israel’s stock market provides an investment environment as advanced as many other major globalized markets - so this formal recognition of Israel’s status on the global financial stage is very important. It will also enable an increase in the flow of funds into our market, enabling a far wider pool of investors to take advantage of the wide range of investment opportunities provided in Israel.”
Moshe Terry, Chairman of the Israeli Securities Authority added: “The FTSE Index decision is a clear indication of the growing stature and solid foundations of Israel's capital markets. Israel have implemented a profound structural reform of our capital markets, bringing our capital markets infrastructure into line with the best practices of the world's most stable and sophisticated markets. Our market is founded on a well-developed system of disclosure, corporate governance, and conduct of business regulation. This represents a unique blend of strong growth and reduced risk that are far too important for anyone to ignore.”
