2020- Israel’s TASE UP did not TAKE OFF.. yet

In Mid-2020 the Tel Aviv Stock Exchange (TASE) announced on a new platform it developed, called TASE UP.

Against its own business model, of being a platform for trading in public listed companies’ securities, TASE launched a platform where private companies could raise money and have their securities (shares, bonds, etc.) traded, without being publicly listed.

The platform was approved by the Israeli Securities Authority, which exempted these companies from all securities laws’ requirements.

There are terms and limitations off-course and you can check for more details in: https://taseup.tase.co.il/en/ .

One major benefit that is very important for the removal of complexity from private securities transactions, was the fact that the TASE’s clearing system is used to perform the transactions/trades. There is no requirements for escrow mechanisms or complicated transfers.

TASE UP provides high level of flexibility for a company who wants to use its platform. It can list only part of the share capital, all sorts of different types of shares (not allowed in TASE), other types of securities. It is also very cheap to maintain and no mandatory reporting is required.

However, we are now almost 2 years since the launch and there are not even 10 companies who used the platform and those who did, used it for a very partial purpose.

There are many reasons, raised by many experts why the TASE UP dis not TAKE OFF. I will not count them, as not real research was conducted to pinpoint the reasons.

My view is that its another attempt to increase the accessibility of private securities trading and fund raising opportunities to a growing number of interested parties.  

I still hope TASE UP will find its place and TAKE OFF.