The Tel Aviv Stock Exchange issued on Thursday a call for public input to consider two alternatives for adding Friday as a trading day, alongside the existing trading days. The initiative is in collaboration with the Israel Securities Authority and the Bank of Israel.
The three entities aim to evaluate the benefits and implications of altering the current trading schedule. The goal is to remove barriers for global investors, create greater benefits for Israeli companies and local investors, and increase liquidity.
Following numerous discussions over the years and recognizing the critical importance of enhancing the international profile of the Israeli capital market, it has been decided to thoroughly re-examine the trading days on the stock exchange and align them with global standards. The two alternatives under consideration are:
- Transitioning from the current Sunday to Thursday trading schedule to a Sunday (starting at 12:00 PM) to Friday schedule.
- Transitioning from the current Sunday to Thursday trading schedule to a Monday to Friday schedule.
According to the stock exchange management, under the current setup, trading ends on Thursday, with extended overlap hours with the European market and limited overlap with the U.S. market. Following the end of the trading week in Tel Aviv, two consecutive trading days continue on foreign exchanges –Thursday afternoon and Friday.
This affects both local players and especially global investors, who consistently point out that the need for unique trading methods for Israel creates a significant limitation.
For global investors, the absence of trading in Tel Aviv on Friday deters their participation and complicates their activities in local securities. The gap in trading days creates difficulties in making adjustments for securities traded on the exchange, which are included in global indices. It necessitates hedging if foreign investors want to conduct transactions on Friday in securities traded on the exchange and requires activity on Sunday, which is a day of rest abroad.