The Tel Aviv Stock Exchange (TASE) Board of Directors, Thursday, (19 November 2015), authorized the launch of options on all the remaining 16 shares included in the TA 25 Index. As a result of this decision, it will be possible to trade in options on all shares listed on the index.
In 2009, for the first time, the TASE launched options on TA 25 Index shares. Last year, options were also launched on Bezeq's and Perrigo's shares. Currently, options are traded on nine TA 25 Index shares.
The decision to launch the options was intended to expand the range of options listed for trading on the TASE. The launch of the options will give exposure through derivatives to the biomed, technology, real estate and construction, investment and holdings sectors. Currently, options are only issued for shares in the banking, trade and services, manufacturing, and oil and gas exploration sectors.
The launch of the options will grant additional advantages:
• The undertaking of diverse investment strategies that have been made possible following the completion of the group of options on TA 25 Index shares in general, and the completion of the group of options on the Tel Aviv Banking Index in particular (following the launch of options on First International Bank of Israel shares).
• The undertaking of a simplified short alternative on the same shares, through synthetic contracts or the Call001 option.
• Transactions in the new options on shares, undertaken until now only as OTC transactions, will, from now on, also be available on the TASE, thereby reducing the credit risk to the parties involved in these transactions.
The options will be launched in stages. A separate announcement will be made with the exact launch dates.
Robby Goldenberg, Senior Vice President, Head of Trading, Derivatives & Indices Department said: “The launch of the new options, which will complement the group of options on all TA 25 Index shares, is an important step toward expanding and diversifying trading options on the TASE. We hope that this step, along with the other steps that we are moving forward on, will provide a response to the market’s needs and contribute to the improvement in liquidity and increase trading volumes”.
