In July 2010, the Tel Aviv Stock Exchange (TASE) launched a new equity indices methodology, which aligned its methodology with that of leading international index providers and accelerated the growth of TASE index-tracking products.
Over the past year, given the growing experience and the changes which have occurred in the capital market, TASE is currently re-evaluating the existing methodology with an eye to introducing improvements aimed at rendering indices more robust for investors as well as for mid and small-cap companies seeking to raise capital on TASE.
The envisioned all-new methodology is designed to improve the stability of TASE's indices and significantly reduce the risk undertaken by investors and index tracking instruments, which currently manage assets of some NIS 37.5 billion in instruments tracking TASE equity indices alone.
The TASE board of directors has already undertaken a preliminary discussion of the issue and round tables between TASE’s indices team and market participants have already started in order to articulate finalized proposals. Once approved, the smooth transition to the all-new methodology will be conducted incrementally, over the course of a year in a monthly 12-steps.