TA-35

TA-35
Name	TA-35
Type	Stock market index
Location	Tel Aviv
Operator	Tel Aviv Stock Exchange
Inception	1992
Constituents	35
Capitalization	Large-cap

TA-35.

Overview

The TA-35 is the flagship equity index of the Tel Aviv Stock Exchange and serves as a benchmark for Israeli large-cap issuers including firms listed by Bank Hapoalim, Bank Leumi, Teva Pharmaceutical Industries, Check Point Software Technologies, and Israel Chemicals. It is used by asset managers such as BlackRock, Vanguard Group, State Street Corporation, and Allianz for passive strategies and by institutional investors like the Pension Funds, Sapphire Ventures, Clal Insurance Enterprises Holdings, and Harel Insurance Investments and Financial Services to measure exposure to Israeli capital markets. The index influences instruments traded on venues such as the Tel Aviv Stock Exchange and in derivatives linked to the Tel Aviv 35 Index ecosystem with participation from market makers tied to Bank of America, Morgan Stanley, Goldman Sachs, and Citigroup.

History

The index was established during a period of structural reforms affecting the Tel Aviv Stock Exchange, the Bank of Israel, and the Israeli government in the early 1990s alongside privatizations involving Israel Electric Corporation and El Al Israel Airlines. Changes in listing rules mirrored practices at the New York Stock Exchange and the London Stock Exchange and were influenced by capital flows from funds managed by KKR & Co., The Carlyle Group, and Temasek Holdings. Over time, corporate actions by companies such as Bezeq, Isracard, Delek Group, and Paz Oil Company altered sectoral weightings, while macro events including the Dot-com bubble, the 2008 financial crisis, and regional shocks tied to Operation Protective Edge and diplomatic developments with United States administrations affected performance and liquidity. Reconstitutions of the index and methodological updates were coordinated with regulatory guidance from the Israel Securities Authority and international advisors including McKinsey & Company and PwC.

Composition and Constituents

The TA-35 comprises 35 large-cap companies selected for market capitalization and liquidity drawn from sectors represented by firms such as Teva Pharmaceutical Industries, Bank Hapoalim, Bank Leumi, Nice Systems, Check Point Software Technologies, Cellcom Israel, Partner Communications Company, Israel Chemicals, Azrieli Group, Shufersal, Excelia, Icl Group (Israel Chemicals), Electra Consumer Products, OPKO Health, Delek Drilling, Elbit Systems, Rafael Advanced Defense Systems, Israel Aerospace Industries, Strauss Group, Osem Investments, Mega Retail Group, Gazit-Globe, Alony Hetz Properties, Shikun & Binui, Africa Israel Investments, Harel Insurance Investments and Financial Services, Clal Insurance Enterprises Holdings, Isramco Negev 2, Paz Oil Company, Delek Group, Fattal Hotels, and Tower Semiconductor. Constituents are reviewed periodically and replacements involve entities with listings like NASDAQ cross-listings or secondary listings that include names such as Mobileye, Nice Ltd., Wix.com, CyberArk, Sapiens International Corporation, and Stratasys when eligible under index rules.

Market Structure and Trading

Trading of TA-35 constituent stocks occurs on the Tel Aviv Stock Exchange central order book with participants including broker-dealers such as Leumi Partners, Clal Finance, Ziv Group, Acco Holdings, and international brokers including Goldman Sachs, Morgan Stanley, UBS, and Deutsche Bank. Market infrastructure relies on clearing and settlement arrangements coordinated with the Bank of Israel and custodians like Bank Hapoalim, Bank Leumi, and international custodians such as BNY Mellon and J.P. Morgan. Liquidity provision is supported by market makers from firms such as Cantor Fitzgerald and Susquehanna International Group. Trading sessions align with regional time zones and interact with global markets including the New York Stock Exchange, NASDAQ, London Stock Exchange, Euronext, and Hong Kong Stock Exchange, affecting arbitrage and ETF flows managed by providers like iShares, Vanguard, and SPDR.

Performance and Notable Events

The index has reflected boom-and-bust cycles tied to issuers such as Teva Pharmaceutical Industries whose patent cliffs and settlements altered returns, and to financial groups like Bank Hapoalim and Bank Leumi affected by credit cycles and regulatory action from the Israel Securities Authority. Notable events include sharp declines during the 2008 financial crisis and rebounds during recovery phases led by technology exporters linked to Silicon Wadi success stories such as Wix.com and Mobileye. Corporate restructurings, mergers and acquisitions involving Elbit Systems and private equity bidders like Apax Partners have prompted reweightings. Passive product launches by iShares and active strategies by asset managers such as BlackRock have increased correlation with global equity indices including the MSCI World Index and influenced volatility patterns observed during geopolitical episodes like Operation Protective Edge and diplomatic milestones with the United States and European Union.

Regulation and Governance

Index governance follows criteria set by the Tel Aviv Stock Exchange and supervision by the Israel Securities Authority, with methodological transparency informed by international best practices from IOSCO and consultations with advisory firms such as Deloitte, KPMG, Ernst & Young, and PwC. Listing, disclosure, and corporate governance standards for constituents reference rules applied by exchanges including the New York Stock Exchange and regulatory frameworks influenced by treaties and agreements involving the European Union and bilateral investment discussions with the United States. Stakeholders include institutional investors like Pension Funds and regulatory bodies such as the Bank of Israel which monitor market integrity, clearing by TASE Clearing House, and compliance with standards advocated by organizations like the World Federation of Exchanges.

Category:Stock market indices