Tel Aviv Stock Exchange and ISA to Examine After-Hours Trading and Tokenization

The Israel Securities Authority (ISA) and the Tel Aviv Stock Exchange (TASE) announced on Tuesday the establishment of two joint working groups to examine the expansion of trading hours in Israel—including an after-hours trading phase—and the implementation of securities tokenization. Both initiatives have been designated as strategic projects for 2027. At this stage, they are under evaluation only, with no official launch dates set or final implementation decisions made.

After-Hours Trading Evaluation

The first working group will explore a framework for trading between 17:30 and 23:00, following the conclusion of the regular trading day. In the initial phase, the team will evaluate trading in stocks and bonds, including dual-listed shares and exchange-traded funds (ETFs) tracking international indices. These securities are highly sensitive to corporate earnings reports, macroeconomic data releases, and trading activity in leading global markets, particularly in the United States, which occurs after the Tel Aviv market closes.

According to the preliminary outline, this late-stage trading would take place in a dedicated, separate trading environment and would begin as close as possible to the closing of regular trading. Moving forward, the team will also consider expanding after-hours trading to other financial instruments, including derivatives.

Securities Tokenization on Blockchain

The second working group will focus on tokenization—the digital representation of a security or its associated rights via a secure digital record (token) on a blockchain-based infrastructure.

According to the ISA and the TASE, the underlying assets and investor rights will remain unchanged under the models being evaluated, as will disclosure rules, regulatory oversight, and investor protection standards. The primary shift will be in the infrastructure used to register, issue, trade, and settle these assets.

The authorities highlighted several key advantages of tokenization:

• Faster and more secure settlement through atomic transactions (simultaneous transfer of asset and payment).

• The use of smart contracts to automate corporate actions and interest payments.

• The opening of entirely new distribution channels for financial products.