Tel Aviv stock exchange to be run for profits, close Sundays

Israeli cabinet ministers unanimously approved a bill to change the structure of the Tel Aviv Stock Exchange to a for-profit entity, a move to make the bourse stronger and more competitive.

Finance Minister Moshe Kahlon last week said he would submit the bill to a cabinet vote.

The stock exchange’s members approved a demutualisation plan last year for Israel’s bourse, which is struggling with falling trading volumes and a declining number of listed companies.

“This is process that will bring economic growth, strengthen the stock exchange and allow it to return to its rightful place as a central engine of growth of the Israeli economy,” Mr Kahlon said in a statement.

Also as part of the bill, the Stock Exchange would shift to Monday through Friday trading from its current Sunday to Thursday format, to align itself with global — mainly European — markets.

The move would also make Israel’s stock exchange more competitive, enable it to cooperate with foreign exchanges and end Israeli banks’ control over the exchange, he said.

Read the story from Reuters at the Australian Financial Review.