Tel Aviv Stock Exchange Considers Extending Trading Hours Past 11 PM

The Tel Aviv Stock Exchange (TASE) and the Israel Securities Authority (ISA) are forming a joint working group to explore extending trading hours until 11:00 PM. This initiative, part of the TASE's 2027 work plan, aims to create greater overlap with Wall Street trading hours. Initially, the extended trading would focus on stocks, bonds, dual-listed stocks, and ETFs tracking international indices, operating in a separate, dedicated environment.

Institutional investors may oppose the move, as they did with previous changes to trading days. Unlike retail investors, institutions must react to general news and company reports, requiring them to adapt to new trading schedules. The TASE argues this extension would allow investors to respond to U.S. economic news and overseas market movements on the same evening, rather than waiting until the next Israeli trading day.

The working group will define trading rules, information dissemination mechanisms, clearing procedures, and obligations for exchange members and market makers. The ISA's announcement mentioned extending trading hours, but the TASE clarified it intends to create a separate, later trading venue, akin to the 'After Hours' trading common in the U.S., rather than a continuous extension of the regular day. This later session would not include all the regular trading day's mechanisms designed to curb sharp price fluctuations.

This proposal aligns with a global trend of extended trading sessions, with exchanges like Nasdaq, NYSE Arca, and Cboe already operating nearly 23 hours a day. While the Tel Aviv initiative is more limited, it shares the same logic of catering to global market activity. However, extended hours do not guarantee increased activity and could lead to lower liquidity and higher volatility in the evenings if new participants do not join.

The consideration follows TASE's recent shift to a Monday-Friday trading week, which coincided with a 65% increase in average daily trading volume, though the exact impact of the day change is unclear. TASE senior executive Yaniv Pagot stated the move is an internal examination, driven by global trends and client demand, particularly from retail investors trading U.S. stocks outside regular hours. He indicated potential changes, possibly extending trading to 7:00 PM to increase overlap with New York.