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Overview |
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TACT (Tel-Aviv Continuous Trading) is the TASE’s automated system for continuous and simultaneous trading. All securities and derivatives trade via the TACT system – equities, convertibles (convertible bonds and warrants), bonds, T-bills, index products, options and futures. The system is based on a computerized order book accessible to all investors (order-driven), similar to the trading systems used by European stock exchanges.
The TACT was launched in 1997, and gradually replaced the previous method of integrated trading on the floors and computerized systems. With the launch of TACT-Derivatives in October 1999, the transition from outcry trading on TASE floors to electronic trading was completed, ending the era of floor trading in Tel Aviv and ushering in a new chapter in TASE history.
TACT enables transparent trading, so that at anytime all investors can see the same detailed and accurate picture of trading in real time.
TACT ranks with the most advanced trading systems used by the world’s leading stock exchanges. In 1998, TACT won the Tel-Aviv University Adams Institute’s prize for outstanding computer systems.
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Trading Phases |
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Derivatives' trading has one continuous phase only. Securities' trading is carried out in five phases:
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- Closing auction
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Market Makers |
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In 2003, the TACT system began to support the integration of market makers in the trading process. Market making provides liquidity for traded securities, in order to facilitate buying and selling by investors. Market makers operate under the existing TACT rules, without any preference over other investors in terms of trading or information.
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Transmitting Trading Orders |
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Continuous trading is carried out between the various TASE members, who transmit trading orders on behalf of their customers. TASE members’ central computers are connected to the trading computer, so that branch employees can transmit orders online. Most TASE members enable their customers to transmit trading orders via the Internet and through other computerized means.
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Remote Trading
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The Tel-Aviv Stock Exchange established a new connectivity platform, which connects TASE members and investors operating from outside of Israel to the TACT (Tel-Aviv Continuous Trading) system. The system allows foreign investors to facilitate DMA (Direct Market Access) through the new connectivity platform. It also allows using algorithmic trading, quote generators and the proprietary order routing system of GL Trade. The system that was developed by "GL Trade" company facilitates the ability of foreign investors to efficiently access the Israeli market. The system has already been employed by two foreign TASE members.
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Survivability and Backup |
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Extensive efforts have been invested in planning and constructing the TACT system, in order to ensure that it is always available for TASE members to transmit their customers’ orders quickly and efficiently, and to provide a service without malfunctions and interruptions.
The TASE has established a sophisticated survivability structure for its computerized systems as well as the communications and electrical networks serving the TACT system. The backup structure includes a “hot backup” facility located off-site, at a distance from Tel Aviv, at which trading and clearing can be carried out in the event that they cannot be performed on TASE premises.
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Protecting Investors |
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The TACT system contains mechanisms to protect investors. One of the most important mechanisms is the use of circuit breakers – cessation of trading on the TASE in case of an extreme fluctuation in prices, as is customary at most stock exchanges worldwide.
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