Tel Aviv Stock Exchange Explores Extended Trading Hours and Tokenization

The Israel Securities Authority and the Tel Aviv Stock Exchange (TASE) have announced the formation of joint teams to examine significant potential changes to the Israeli trading landscape. The most dramatic of these proposals involves extending trading hours until 11:00 PM, aligning with the closing time of US markets.

This extension would primarily focus on dual-listed stocks, which trade on both the TASE and international exchanges like Wall Street, as well as exchange-traded funds tracking global indices and assets. These securities are currently heavily influenced by economic news and international market fluctuations that occur after the TASE closes. This move follows a recent shift by the TASE in January to align its trading days with global markets, moving from Sundays to Fridays, and Nasdaq's announcement of a 23-hour trading day starting in December.

The second team will investigate the concept of tokenization, which involves transforming traditional securities like stocks and bonds into digital assets represented by tokens on a blockchain. This would allow for ownership to be recorded and traded on a new technological infrastructure, aiming for faster and more efficient trading, transfers, and settlements, without altering the underlying assets themselves.

These initiatives signal a significant effort by Israeli financial regulators and the stock exchange to modernize trading practices and enhance integration with global financial markets.