A group of Exchange members established the TASE Clearing House, which also functioned as Israel’s central securities depository.

The Knesset enacted the Securities Law, creating a modern regulatory framework for the TASE operations and established the Israel Securities Authority

Given a substantial growth in its activities, the Exchange moved to a more spacious location at 54 Ahad Ha'Am Street, which is its current location.

The TASE launched its derivatives market. The first product, options on the TA-25 Index, has become the TASE’s most active product.

The TASE introduces options on the shekel-dollar exchange rate.

The TASE introduced a fully automated trading system called TACT (Tel Aviv Continuous Trading). By October 1999, all shares, bonds, T-bills and derivatives have been migrated to the new electronic trading platform. The once bustling trading floors were refurnished and turned into a Visitors Center.

The Knesset enacted the dual-listing law. The Law offered companies traded on NASDAQ, NYSE, AMEX an attractive way to dual-list their shares on the TASE and does not impose any additional regulatory burden. On 2005 the law was also applied to companies listed on the LSE and NASDAQ Smallcap.

Integrating with global markets, the TASE opened an electronic link with the U.S. Depository Trust Corporation (DTC) to enable seamless transfer of dual-listed shares to and from the U.S. In addition, the TASE appointed Citibank as the custody and settlement agent of the Exchange and its members for US-traded securities.

In November, Israel’s parliament enacted a new law to ensure the TASE Clearing Houses financial stability. The act upgrades the regulations governing the TASE Clearing Houses for securities and derivatives. The law reinforces the delivery-versus-payment procedure, and allows the Clearing Houses to realize collateral, if needed, more easily.

In June, market makers begin acting in securities traded on the TASE.