Nasdaq has paired up with the Tel Aviv Stock Exchange (TASE) in a new venture to support private growth companies in Israel.
The venture will offer strategic counselling and mentoring to private companies, and add a secondary market for liquidity events and debt financing services.
Sandy Frucher, vice chairman of Nasdaq, said: “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 US – 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."
On top of this, TASE has agreed to use Nasdaq’s Genium INET technology for trading across different asset classes, including equities, derivatives, bonds, fixed-income and commodities.
Use of the technology is intended to support the exchange’s focus on expanding its business and product offerings, both on a domestic and international basis. It also means TASE will be adopting technology in line with international best practices.
Frucher said: "We are proud of this important agreement with TASE, which brings both technology and innovation together in a very ambitious way."
CEO of TASE Yossi Beinart said the agreement as good news for both the stock exchange and the Israeli economy.
"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,” he said.
“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.”
Nasdaq’s exchange technology is now in use in more than 100 markets across the Middle East, Asia, Africa, Europe and the Americas.
