Revolution on the Stock Exchange: The move that will change trading by 15 billion shekels
A dramatic step by the Tel Aviv Stock Exchange to increase liquidity in corporate bonds leads to the joining of dozens of series and a prominent financial institution that will directly affect investors' pockets.
The new market-making program of the Tel Aviv Stock Exchange for corporate bonds continues to expand, now covering a larger number of series and financial institutions. During the last month, 24 additional bond series joined the program, with a total market value of approximately 15 billion shekels.
In parallel with the expansion of the number of series, the company Mor Tech and Capital Markets joined the program as a market maker. The company began operating in the field of ETFs at the beginning of 2026 and is now expanding its activity to the corporate bond market as well. Its joining brings the number of active market makers within the program to eight.
Alongside Mor Tech and Capital Markets, Bina Investments, Migdal Market Making, Meitav Trade, Meitav Market Making, Solid Liquidity, Aloha, and Proxima are operating in the program. For 14 of the bond series participating in the program, two market makers will be appointed simultaneously, with the aim of creating competition between the entities and improving trading conditions for investors.
Quotation data within the program indicates an attempt to create more liquid trading in bonds. The buy and sell gap, known as the spread, is expected to stand at an average of about 0.18%, while the gap weighted by the market value of the series is expected to be lower and stand at about 0.15%. The average quote amount is expected to total about 145 thousand shekels, while the amount weighted by market value will stand at about 190 thousand shekels.
The expansion of the program is intended to deal with one of the main challenges in corporate bond trading, which is the level of liquidity. Market making allows for the continuous display of buy and sell prices, and thus may make it easier for investors to enter or exit a position. In addition, narrowing price gaps may moderate trading costs and help create a more active market.
The possible impact is not limited only to the ability to execute transactions quickly. Higher liquidity may also assist in the price discovery process, meaning the market's ability to reach a valuation that more accurately reflects the value of the bonds and the issuing companies. From the exchange's perspective, improving conditions may also contribute to the attractiveness of the Israeli corporate bond market for investors from abroad.
The joining of additional entities to the program also increases the variety of entities involved in market-making activity. The combination of companies specializing in the fields of nostro, market making, and ETFs allows for expanding the expertise base and strengthening competition between participants.
The fact that two market makers will operate simultaneously in some of the series is intended to add another competitive layer. Instead of relying on a single entity to display prices, competition between two entities may provide investors with more attractive trading conditions and contribute to improving the quality of quotes.
Ultimately, the expansion of the program reflects an attempt to strengthen the infrastructure of the corporate bond market in Israel through a combination of more bond series, more financial entities, and the creation of trading conditions aimed at improving liquidity. For investors, the goal is to enable more efficient and accessible trading, alongside an improvement in the bond pricing process.
