TASE Trading System Overview

TACT (Tel-Aviv Continuous Trading) is the TASE’s automated system for continuous and simultaneous trading. All securities and derivatives trade via the TACT system – equities, convertibles (convertible bonds and warrants), bonds, T-billsETFs, options and futures. The system is based on a computerized order book accessible to all investors (order-driven).

TACT enables transparent trading, so that at anytime all investors can see the same detailed and accurate picture of trading in real time. TACT is equally accessible to all investors – a small-scale investor is able to relay trading orders similarly to a large-scale investor in Tel Aviv's "city".

Trading Phases

Securities' trading is carried out in five phases:

Market Makers

The TACT system supports the integration of market makers in the trading process. Market making provides liquidity for traded securities, in order to facilitate buying and selling by investors. Market makers operate under the existing TACT rules, without any preference over other investors in terms of trading or information.
 

Transmitting Trading Orders

​Continuous trading is carried out between the various TASE members, who transmit trading orders on behalf of their customers. TASE members’ central computers are connected to the trading computer, so that branch employees can transmit orders online. Most TASE members enable their customers to transmit trading orders via the Internet and through various trading applications.
 

Protecting Investors

​The TACT system contains mechanisms to protect investors. One of the most important mechanisms is the use of circuit breakers – cessation of trading on the TASE in case of an extreme fluctuation in prices, as is customary at most stock exchanges worldwide.
 

"Quote Generators"

The "quotes generator", also known as the "trading machine" is software through which a large number of orders can be sent to TASE trading systems within a short period of time, in accordance with an algorithm set in the software. This type of trading is also known as "Algorithmic Trading".
The activity of quote generators on the stock exchange continues to grow from year to year and occupies a significant share of the total activity in the options market on the TA-35 index. Approximately 2/3 of the orders currently executed on TASE are sent by quotes generators.
 

Trading Rules and Regulations

The complete trading rules can be found in the Trading Rules & Regulations.
 

Trading Lists

There are several securities lists traded on TASE. 
 

The Main List

The main list is a list of active securities traded during all trading phases.
 

Illiquid Securities 

The Illiquid securities list was set up in order to reduce the possibility of manipulating such securities. Securities included in this list are traded in a call-auction phase twice a day, at the beginning of the trading day (opening phase) and at the end of the day (closing phase), and are not traded on the basis of bilateral, continuous trading.
 

The Maintenance List

The maintenance list is a list of securities that were removed from the main list because of non-compliance with the maintenance rules.
Securities that are included on the maintenance list are traded in the multi-lateral trade, twice a day only, at the beginning of the trading day (opening trade) and at the end of the day (closing trade).
 
 

Suspension of Trade

Suspension of trade is the halt of trade in a security for a period of more than one trading day. Suspension of trade takes place in circumstances in which there is concern that it will not be possible to engage in proper and fair trade in the security. During the suspension of trade, trading does not take place in the security; however, the company bears all the duties applicable to TASE companies, such as: publication of financial statements, reporting on the calling of general meetings and the publication of other immediate reports.
 
 

Resilience and Backup

​Extensive efforts have been taken in planning and constructing the TACT system, in order to ensure that it is always available for TASE members to transmit their customers’ orders quickly and efficiently, and to provide a service without malfunctions and interruptions.
The TASE has established a sophisticated resilience structure for its computerized systems as well as the communications and electrical networks serving the TACT system. The backup structure includes a “hot backup” facility located off-site, at a distance from Tel Aviv, at which trading and clearing can be carried out in the event that they cannot be performed on TASE premises.