The automation revolution at the TASE proceeded in stages. The first phase began with the acquisition of IBM mainframe computers and the establishment of an advanced communications network with the TASE members. Concurrently the TASE began to develop systems for back office functions, listings and clearing, along side a central database for securities information.
The second stage of improving the trading system involved the transition from floor-based trading to a semi-automated multilateral trading method ("Meretz"). After its success the TASE decided to migrate all the securities to a fully-automated multilateral trading system, which was inaugurated in 1991 ("Karam"). The trading floor continued to serve the bilateral trading.
The third stage involved a final transition to electronic trading, fully-automated, continuous, and simultaneous. From 1997 to 1999 all the securities traded on the TASE migrated to the TACT. This system allowed stock market members to connect with the TASE computers through their own central computers for the first time.
Pre inauguration of the continuous trading system, the trading volume in shares was about NIS 240 million a day. The system shattered the glass ceiling that has limited trading turnovers in the pre-electronic era. Today the record for daily turnover has reached about NIS 5.4 billion.
The automation led to improved efficiency and fairness in trading. The trading method is anonymous and the data is available to all seekers. Efficiency has increased volumes of trading, number of listed companies as well as introduction of new financial instruments.