The Tel Aviv Stock Exchange (TASE) approved increasing the Order-to-Trade Ratio (OTR) of quote generators in the TASE derivatives trading, from 11:1 to 15:1. This follows requests received by the TASE from the capital market participants.
The TASE regularly reviews the ratio between the number of orders sent via quote generators and the trading volumes generated by these orders, and found that the ratio can now be increased. Nonetheless, the TASE will continue to monitor this ratio and revise it, if necessary.
An analysis by TASE staff indicates that, in 2016, lively use of quote generators continued for trading in TA-35 options and that 68% of the orders executed were sent via quote generators, compared with 62% in 2014; and they participated in 57% of the transactions executed, compared with 52% in 2014.
Increasing the OTR is expected to increase liquidity and turnover growth in derivatives traded in the TASE.
An OTR of 15:1 for future contracts and options will come into effect on April 9, 2017.