A deal between Nasdaq and the Tel Aviv Stock Exchange (TASE) will make it easier for investors in privately held Israeli companies to exit their investments.
The two organisations have signed a “strategic agreement”, which will see private companies locally offered “strategic counseling and mentoring, exclusive networking, a secondary market for liquidity events and debt financing services”.
The deal also sees the exchange adopt Nasdaq’s Genium INET technology, to facilitate trading in equities, derivatives, bonds, fixed income and commodities. The exchange is expected to use the technology to attract more international investors.
Sandy Frucher, vice chairman, Nasdaq, said: “By leveraging our world-renowned Genium INET platform, TASE will have limitless opportunity to expand their product and business offerings to the domestic and international markets. Further, our collaboration to build a private market to support regional growth companies will also enhance Tel Aviv as a capital markets hub. Our own successful history creating public and – recently in the US – private markets only underscores our sincere commitment to developing this new and exciting venture. We look forward to a long and successful partnership with TASE.”
Yossi Beinart, CEO of TASE, said: “For the first time we can offer Israeli companies a real solution to challenges in their growth and give them a real alternative to an exit, so that they will continue to operate as independent companies with significant operations in Israel. The new joint market will offer various models for raising capital to companies not yet ripe to go public and to be a bridge for their desire to continue development in Israel and later in markets worldwide. The exchange system we are adopting is the cutting edge of trading technology in accordance with the standard accepted worldwide and will help us to stand as equals with the leading markets facing rapid changes in the global world.”
The Tel Aviv exchange was established in 1953 and currently lists 461 traded companies with a market capitalisation of some $200bn (€186bn). It also trades 597 corporate bonds and 640 exchange traded notes, using a fully automated central order book trading system, and providing clearing, settlement and depository services.