TASE Aligns With World Derivatives Markets

TEL AVIV, Israel, July 2, 2013 /PRNewswire/ --

New instrument for hedging short-term risk; Additional expiration dates for TA-25 options; An additional daily quota on orders placed by quote generators will be set, to encourage liquidity in weekly options

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At the meeting on 23 May 2013, the Tel Aviv Stock Exchange (TASE) Board of Directors approved the launch of weekly options and futures on the Tel Aviv-25 index, starting on 3 July, 2013. In order to supply liquidity to the trading of the new options, the Board decided to set an additional daily quota of 10,000 orders for each HFT's in these options. Limits on the order/trading volume ratio will not be placed on orders placed within these daily quotas.

The new options are well-suited to a wide range of investors seeking short-term exposure hedging. The launch of weekly options on TASE will likely improve liquidity for both derivatives and the TA-25 constituent shares.

The terms of TASE's weekly options are similar to those of monthly options:  cash-settled "European" options with a multiplier of 100. The settlement price for option exercise shall be the Opening Price for the TA-25 index, set each Thursday. New series of weekly options shall begin to trade on Wednesdays, which also marks the final trading day of the previous weekly series.

In addition to the options, TASE will launch weekly futures on the TA-25 index.

"The launch of weekly options constitutes yet another layer in the expanding array of products and services, which TASE provides investors - Israeli and foreign alike", remarks Ester Levanon, TASE CEO "Their launch aligns TASE with derivatives exchanges throughout the globe and it is anticipated that it will contribute to market efficiency and increased activity."

About TASE

Established in September 1935, the Tel-Aviv Stock Exchange is Israel's sole securities exchange, offering an increasingly sophisticated range of products to investors, including equity, corporate bonds, treasury bills and notes, index products and derivatives.

International

In recent years, TASE has enhanced its international presence, signing Memoranda of Understanding with the London Stock Exchange, NASDAQ, NYSE-Euronext the Shanghai Stock Exchange, and Toronto Stock Exchange.

For more information please contact:

Idit Yaaron or Orna Goren, TASE, +972(3)5677-405/6

Visit the Tel Aviv Stock Exchange's Website: http://www.tase.co.il

SOURCE Tel Aviv Stock Exchange Ltd

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