A.         The list of illiquid securities is updated twice a year on the basis of the liquidity of the securities over the six months preceding the record dates on which the list is updated. These dates are April 15^th and October 15^th, each year. In practice, updating takes place every year on June 15^th and December 15^th, respectively.

B.         A security will be entered in the illiquid securities list if a combination of the following four conditions exists:

1.         The median trading volume for the six months, as aforesaid, was less than NIS 2,000.

2.         The daily trading volume for the six months, as aforesaid, was less than NIS 20,000.

3.         The security has been traded on the TASE for more than six months, as aforesaid.

4.          The security has not been in continuous suspension for six months, as aforesaid.

C.         Shortly after the date of record, the TASE publishs the list of securities that are about to be included in the illiquid securities list  (“candidates lists”) as well as a list of securities that are about to be removed from the list. Eventually, a security on the “candidates lists” will not be included in the illiquid securities list if one or more of the following conditions applies:

1.             A market-maker was appointed for the security.

2.             The security is included in the maintenance list.

D.         Warrants for a stock included in the illiquid securities list is also  included in the list.

E.         Securities may also be added or removed from the list at different times other than the dates mentioned above.

If, for example, a security is destined for the illiquid securities list, but because of market-making existence in that security was not eventually included, it may be added to the list if market-making ceases. Alternatively a security included in the illiquid securities list may be removed immediately on the commencement of market-making in that security.

A.         Continuous trading in securities on the illiquid securities list do not take place and these securities are traded in a call-auction phase twice a day, at the opening phase and at the closing phase.

B.         Trading in illiquid securities opens every day, as with all other securities, in the pre-opening and opening phases. Immediately following the completion of opening call-auction phase, these securities move directly to the pre-closing phase and not to the continuous phase. This phase continues throughout the entire day, while the other securities are traded on the basis of the continuous phase, and conclude when the entire securities move over to the closing call-auction phase.