Nasdaq (Nasdaq:NDAQ) and Tel-Aviv Stock Exchange (TASE) have officially announced a strategic cooperation.
The two have agreed to form a jointly-operated venture to support private growth companies in Israel. The venture, which will operate out of Tel Aviv, will offer various benefits to private companies including strategic counseling and mentoring, exclusive networking, a secondary market for liquidity events and debt financing services. The private market will have an independent management team chosen by both exchanges. Further details of the venture will be announced during first half of 2016.
In addition, Tel-Aviv Stock Exchange has entered into an agreement to deploy Nasdaq's Genium INET technology for trading across a variety of asset classes including equities, derivatives, bonds, fixed income, as well as commodities. The technology overhaul will support TASE's growth focus to attract capital both domestically and internationally, and run cutting-edge technology based on international standards and best practices.
"We are proud of this important agreement with TASE, which brings both technology and innovation together in a very ambitious way," said Sandy Frucher, Vice Chairman, Nasdaq. "By leveraging our world-renowned Genium INET platform, TASE will have limitless opportunity to expand their product and business offerings to the domestic and international markets. Further, our collaboration to build a private market to support regional growth companies will also enhance Tel Aviv as a capital markets hub. Our own successful history creating public and-recently in the U.S.-private markets only underscores our sincere commitment to developing this new and exciting venture. We look forward to a long and successful partnership with TASE."
"The cooperation with Nasdaq is great news for the Tel-Aviv Stock Exchange and the Israeli economy," said Yossi Beinart, CEO of TASE. "For the first time we can offer Israeli companies a real solution to challenges in their growth and give them a real alternative to an exit, so that they will continue to operate as independent companies with significant operations in Israel. The new joint market will offer various models for raising capital to companies not yet ripe to go public and to be a bridge for their desire to continue development in Israel and later in markets worldwide. The exchange system we are adopting is the cutting edge of trading technology in accordance with the standard accepted worldwide and will help us to stand as equals with the leading markets facing rapid changes in the global world. We would like to thank the Nasdaq for their vote of confidence in the Tel-Aviv Stock Exchange and in Israeli growth companies, and we look forward to realizing together the tremendous potential of this cooperation."
Nasdaq's exchange technology, including trading, clearing, CSD and market surveillance systems, is in operation in over 100 marketplaces across North and Latin America, Europe, Asia, Australia, Africa and the Middle East.