TASE to Reduce Limited Trading Halts by 15 minutes

Press Release
24/01/2016
 

The board of directors of the Tel Aviv Stock Exchange (TASE) decided to reduce the duration of limited trading halts by 15 minutes, from 45 Minutes to 30 Minutes.

A limited trading halt is a temporary suspension of the trade in listed securities, when material information is released about the securities, the issuing company or its controlling shareholders. Such temporary halt is authorized by the TASE's CEO in order to give investors the time to consider and plan their next steps based on the new information.

The decision to implement a 30-minute trading halts was made, among other things, as a result of requests by TASE's members and capital market operators. In view of the technological improvements since the introduction of the 45-minute halts, including the publication of corporate reports on Maya and the easily accessible process for trade orders, the board has found that 30 minutes would give investors ample time to process the new information, while gaining the benefit of minimizing the interruption to trade.

Shorter trading halts are also in line with the practices of leading stock exchanges in the world.

Other than the duration, some of the procedures for limited trading halts will also be updated:

  • During the first 15 minutes, no new orders or changes to previous orders will be accepted (as is the present procedure); however, the cancellation of orders will be allowed (contrary to the present procedure). As explained above, blocking the ability to submit new orders in the first 15 minutes is intended to provide the public sufficient time to review the new information and make decisions accordingly, eliminating the need for hasty responses driven only by time pressure.
  • Over the next 15 minutes of the limited trading halt, orders will be accepted, including orders to cancel and change previously made orders. Trade will be renewed at a random point during the 30th minute of the limited trading halt, commencing with multilateral trade.

This change is subject to approval by the authorities.