The Tel
Aviv Stock Exchange (TASE) announces that the changes regarding the shortening
of trading halts will come into effect on 16 January 2017.
The
TASE Board of Directors resolution shortens the duration of trading halts by 15
minutes, from 45 Minutes to 30 Minutes.
A trading halt occurs when material information is released about a trading company,
its controlling shareholders or its securities. Under these circumstances, TASE's
CEO or an individual authorized by him, may temporarily suspend trading in the
company’s securities. Trading halts are
designed to give investors the time to consider and plan their next steps based
on the new disclosure.
The
decision to shorten the duration of the trading halt from 45 minutes to 30
minutes was made, following requests from TASE members and investors. In light
of the technological advances made since the introduction of the existing
framework of trading halts, including
the posting of corporate reports online on MAYA and the improved
accessibility and timeliness of order submission on TASE, the Board decided
that there is no longer a need for such long trading halts. The shorter trading
halts give investors ample time to process the newly released information on
the one hand, and will minimize interruptions to the continuous trade flow on
the other.
Shorter
trading halts also conform to accepted practice in leading stock exchanges
worldwide.
As has
been the case until now, during the first 15 minutes of the trading halt, the
submission of new orders or changes to previous orders will not be
permitted. In contrast to the existing
procedure, however, the cancellation of orders will be allowed. Blocking the
ability to submit new orders during the first 15 minutes is designed to provide
the public sufficient time to review the new information and make decisions
accordingly, without having to act hastily for the sole purpose of securing
priority order handling based on the time of submission. In the subsequent 15-
minute period of the trading halt, orders will be accepted, including orders to
cancel or amend previously submitted orders. Trade will be resumed at a random
point of time during the 30th minute of the trading halt, opening with a Call auction.
