Cabinet approves turning stock exchange into a for-profit
July 3, 2016Cabinet ministers on Sunday unanimously approved a bill proposed by Finance Minister Moshe Kahlon (Kulanu) to change the Tel Aviv Stock Exchange (TASE) into a for-profit venture.
According to Kahlon, ending the banks’ control over the exchange would allow the TASE would be more dynamic, competitive and able to attract more listed companies and boost trading.
Having ownership separate from its members would make it like an ordinary company, in contrast to the existing model of a non-profit entity in which the brokers are the controlling shareholders.
“This is an undertaking that will bring economic growth, strengthen the Bursa (stock exchange) and restore it to its rightful place as a key engine of growth for the Israeli economy,” said Kahlon in a statement.
The TASE has been struggling with falling trading volumes and a declining number of listed companied in recent years. According to reports, thus far in 2016 the trading volumes averaged at 1.28 billion shekels ($332.5 million) a day, down from 1.45 billion a day in 2015 and less than 2 billion in 2010. The number of listed companies has dropped to 445 – 200 less over the past decade.
The plan also calls for moving the trading week from Sunday-Thursday to Monday-Friday, to better align the Bursa with overseas exchanges and allow traders to react more quickly to events.
Now that that Cabinet has approved the bill, it will be brought to the Knesset for a parliamentary approval.
Similar posts
-
Israel Is Held To A Higher Standard Than Any Country
April 25, 2024In the intricate tapestry of global affairs, one nation stands out for enduring scrutiny and condem...
-
Israel Has The Most Moral Military In The World
April 10, 2024In the heart of a region often riddled with conflict, Israel stands out not only for its technologi...
-
The Resilience of the Israeli People
April 2, 2024Visitors from around the world have seen Hamas's October 7th Massacre's destruction in southern Isr...
-
Israel: Small Size, Big Impact
March 21, 2024Nestled along the eastern edge of the Mediterranean Sea, Israel is a land of immense historical sig...
-
Israelis Are Fighting For Their Lives
February 21, 2024By Jonathan S. Tobin The world looks a lot different from Kibbutz Kfar Aza than it does in the U...
-
Over 2 Million Arabs Live In Israel
January 23, 2024In the complex landscape of the Middle East, where diverse cultures and identities intersect, Israe...
-
'Fauda' Star Idan Amedi Injured Fighting in Gaza
January 8, 2024Despite the severity of his injuries, Amedi's father assured Israeli news channels that his life is...
-
Israel Is A Great Country To Live In
December 28, 2023Nestled at the crossroads of the Middle East, Israel stands as a vibrant and dynamic nation, offeri...