The TA Banking Index, which was launched in June 1, reflects the performance of the TASE's five largest commercial banks. Banks make up one of the most active sectors on the Exchange, accounting for 12% of the market's total trading turnover in the first half of 2000. ,p> Trading will begin in three series, with expirations in one, two and three months. The monthly expiration dates will be the last Friday of each month. The specifications and trading rules for the TA Banking Index options and futures are similar to those for the TA 25 Index derivatives.
Dror Shalit, VP, head of the TASE's trading and clearing department, said the new products would enable investors in the banking sector to hedge their portfolios. "International investors, who are active in trading the banks' shares, are expected to increase their participation in the derivatives market as well," Mr. Shalit said.
Mr. Shalit added that the new derivatives were launched in response to demand from traders. The Exchange expects substantial volume in the new products, he said.
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, Treasury bills and derivatives. 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.
