After decades of being part of the management of the Tel Aviv Stock Exchange, the Bank of Israel submitted its letter of resignation.
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Control of the exchange will be in the hands of representatives of Israel’s major banks and investment houses, along with a Finance Ministry representative and some external members.
The move aligns with reforms to the TASE led by Israel Securities Authority outgoing director Shmuel Hauser and Finance Minister Moshe Kahlon to create competition with the banks. These include the establishment of a nominee company for public companies whose relatively low rates have attracted customers from the banks’ nominee companies.
The exchange is also developing an interface to facilitate trading securities directly through it without needing the banks as intermediaries. The central bank’s main reason for resigning is that the TASE is headed toward privatization.