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Trading Securities

​About the TACT (Tel-Aviv Continuous Trading) System

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-bills, ETFs, Traded Foreign Fund, 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 any time all investors can see the same detailed and accurate picture of trading in real time.

Summary of Rules and Trading Phases

Trading is carried out in five phases:
  1. Pre-Opening Trading Phase
  2. Opening Trading Phase
  3. Continuous Trading Phase
  4. Pre-Closing Trading Phase
  5. Closing auction Trading Phase

Derivatives' trading has one continuous phase only.

The TACT system also contains mechanisms for protecting investors

Order Types

The order types are described below and are identical for all types of securities, besides derivatives.
 
An order submitted may be paired with a single counter order (if the volume of the counter order is equal or greater than that of the submitted order) or with more than one counter order (if the volume of the counter order is less than that of the submitted order).
 
Each “pairing” generates a transaction, such that one order may generate more than one transaction with more than one price.
 

Pre-Opening Phase

The following types of buy and sell orders may be submitted:
  • Limit orders (LMT) – A Limit order is submitted with a stipulated price limit, starting from the base price and including the maximum daily  fluctuation price, which for shares is currently ± 35%, and for bonds and M.K.M. (Israeli T-bills ) ± 6%, as applicable.
  • Limit-at-Opening orders  (LMO) – A Limit-at-Opening order  is submitted with a stipulated price limit, starting from the base price and including the maximum daily fluctuation price, which for shares is currently ± 35%, and for bonds and M.K.M. (Israeli T-bills) ± 6%, as applicable, and is designated for execution in the opening trading phase only.
    An LMO order, or part of it, which is not executed during opening trading is automatically cancelled.
  • Stop-Limit orders (STL) – A Stop-Limit order is Limit order submitted with a condition attached. In the pre-opening phase the order is listed in the order book as an order "pending release" and does not participate in opening trade.
    Four alternative conditions are applicable:
    • Buy when the price is greater than/equals a certain value
    • Buy when the price is lower than/equals a certain value
    • Sell when the price is greater than/equals a certain value
    • Sell when the price is lower than/equals a certain value
  • Iceberg orders (ICE) – An Iceberg order is an order submitted in three portions for execution: the total volume, the first peak and an additional peak designated for display. At a given time only the disclosed portion of the Iceberg order is displayed in the order book.
    In the pre-opening phase the first peak is the disclosed portion displayed in the order book while the rest remains hidden. During the opening  trading phase and in the calculation of the theoretical price of securities for which Iceberg orders are submitted, the total volume is taken into account.

    The order is submitted with a stipulated price limit, starting from the base price and including the maximum daily fluctuation price, which for shares is currently ± 35%, and for bonds and M.K.M. (Israeli T-bills) ± 6%, as applicable.

Continuous Trading Phase

The following six types of buy and sell orders can be submitted during the continuous trading phase:
  • Limit orders (LMT) – A Limit order is submitted with a designated price limit. If the order is not paired immediately with a counter-order in the order book, or is only partially paired, the order or the unpaired part of it, is listed in the order book.
  • Fill or Kill orders (FOK) – A Fill or Kill order is a Limit order for full immediate execution. An order not executed in full or immediately is automatically cancelled and is not listed in the order book.
  • Immediate or Cancel orders (IOC) – An Immediate or Cancel order is a Limit order for immediate execution, even if the execution is partial. An order, or part of it, which is not executed immediately is automatically cancelled and is not listed in the order book.
  • Market orders (MKT) – A market order is an order submitted without a designated price limit.
    • A buy Market (MKT)   order is paired with one or more sell orders listed in the order book, starting with the sell order with the  lowest price, or higher than it.
    • A sell Market (MKT)   order is paired with one or more buy orders listed in the order book, starting with the buy order with the highest price, or lower than it.
  • Stop-Limit orders (STL) – A Stop-Limit order is Limit order submitted with a condition attached. The types of conditions are stipulated above for the pre-opening phase. Once a transaction in the security is executed at the price filling the stipulated condition, the order is released as a standard Limit order. Until the order’s release, it is listed in the order book as “pending release”.
  • Iceberg orders (ICE) – An Iceberg order is a Limit order submitted in three portions for execution, as described in the Pre-Opening Phase. At a given time only the disclosed portion of the Iceberg order is displayed in the order book- initially only the first peak is disclosed and only following full execution of the volume indicated on this peak, the additional peak is revealed, until the order is executed in full (total volume). 
     
    The priority for executing various orders bearing the same limit is given to the disclosed portions. The time recorded for the disclosed portion of an Iceberg for the purpose of execution prioritization is the time the portion is rendered “disclosed” in the order book.

Pre-closing trading phase

The following two types of buy and sell order may be submitted in pre-closing trading:
  • Limit orders (LMT) – Limit orders can be submitted to the order book, joining orders carried over from the continuous trading phase. The priority of execution of Limit orders (LMT) carried over from the continuous trading phase does not change as a result of their transfer to pre-closing trading.
  • Iceberg orders (ICE) – An Iceberg order is an order submitted in three portions for execution: the total volume, the first peak and an additional peak designated for display. At a given time only the disclosed portion of the Iceberg order is displayed in the order book. In the pre-closing phase the portion displayed in the order book is the first peak for display, while the rest remains hidden. During the closing (Dutch auction) trading phase and in the calculation of the theoretical price of securities for which Iceberg orders are submitted, the total volume is taken into account.

Bonds and Makam (T-Bills) – Additional Parameters

There are several additional parameters relevant to trade in bonds and Makam (T-Bills)
  • Minimum order size
    • Pre-opening / opening trading phase: The minimum order size is 1 NIS nominal value.
    • Continuous trading phase:
      Makam - 30,000 nominal value (the Makam market is the only one in which the minimum size is expressed in nominal value and not in monetary compensation, as in other markets).
      Bonds - A quantity of bonds worth NIS 30,000.
  • Maximum rate fluctuation
    • Opening trading phase:  ± 6%
    • Continuous trading phase: unlimited.

Additional Information