Tel Aviv Stock Exchange

The third day in Israel was the start of the course work. So I went out for walk along the beach in the morning just to freshen up before the long and exciting day ahead.

We first visited the Tel Aviv Stock Exchange. There was no one trading in the stock exchange. It was completely computerized and all we saw some monitors displaying the stock changes. The Tel Aviv Stock Exchange representative Mr. Kobi Avramov gave us an insightful presentation of the history of the Stock Exchange.

The Tel Aviv Stock Exchange was unofficial started in 1935 and which eventually became official in 1953.  In 1999, the stock exchange made all its transactions fully automated.

The trading system is also called TACT and has the following attributes:

  1. Fully Automated
  2. Order-driven
  3. Central order booth
  4. Price & time priority based
  5. Anonymous tracking

We also learned about the changes in the Capital Gains Tax in Israel. There was no Capital Gains tax prior to 2003. In 2003, the tax was introduced and set to 15% which was then increased to 20% in 2006 and recently was raised to 25%.

We also learned about the TASE Globalization in the last decade. From 2001 to 2007, Israel received significant investments. There was a major market crash in 2008 due to recession and a second crash in 2010. However despite these crashes, MSCI upgraded Israel from emerging to developed market in May 2010.


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