Boosting Liquidity for Bank Mizrahi Tefahot
The introduction of a market making initiative for Bank Mizrahi Tefahot share is a significant move that promises to enhance liquidity, decrease trading costs, and attract more interest from institutional and international investors.
Meitav Market Making and Migdal Market Making Selected
Two respected financial entities, Meitav Market Making and Migdal Market Making, have been chosen to serve as designated market makers for Bank Mizrahi Tefahot's shares. This selection comes as part of TASE’s innovative tailored market making program, designed to support public companies in selecting an appropriate market-making model that aligns with their specific financial needs.
Improving Trading Conditions
Over the last 90 days, Bank Mizrahi Tefahot’s shares have demonstrated a strong average daily trading volume, indicating high liquidity. With this new program, both local and international investors will benefit from improved tools, resulting in a more favorable trading climate and lowering the costs associated with acquiring shares. This initiative aims to amplify quoted volumes in the order book while narrowing bid-ask spreads, especially for larger trades.
Requirements for Market Makers
The designated market makers have a set of obligations to fulfill, including offering continuous quotes in the Bank Mizrahi Tefahot order book daily. They are expected to maintain a minimum quote volume and adhere to a strict maximum spread of 0.25%. These stipulations are anticipated to significantly boost liquidity and make the shares more appealing to a wider spectrum of investors.
Implementation Timeline
This market making program is slated to begin and operate for a year, emphasizing a strategic collaboration between TASE and Bank Mizrahi Tefahot to ensure successful execution and comprehensive support.
Contact Information
For more insights, reach out to:
Orna Goren
Head of Communication and Public Relations Unit
Tel: +972 76 8160405
Email: tase.ir@tase.co.il
Frequently Asked Questions
What is the purpose of the market making program?
The program aims to enhance liquidity, reduce trading costs, and attract greater interest from investors.
Who are the selected market makers?
Meitav Market Making and Migdal Market Making have been chosen for this role.
When does the program start?
The program is set to commence shortly and will last for one year.
What are the obligations of the market makers?
They must continuously quote daily in the order book with minimum volume and a capped spread.
How does this initiative benefit investors?
Investors will enjoy improved trading conditions and lower costs, making the shares more attractive.
