Since January 1 and 2, 2000 fall on a weekend, the Tel Aviv Stock Exchange (TASE), where Sunday is a regular trading day, will be the world’s first stock exchange to trade in the next millennium.
The TASE has reported that the first series of Y2K compliance testing between it and member firms showed satisfactory results. The TASE is using a Y2K-dedicated testing environment, which is shared with participating banks and brokerage firms. Testing, which was started on December 7, simulates full trading days, including the flow of orders to the TACT (Tel Aviv Continuous Trading) system and data dissemination, derivatives trading, and clearing and settlement. The TASE will conduct a second and final series of tests in mid-year.
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Modifications of the TASE’s internal systems were completed during 1998. The Exchange’s core system was set up in the late 1980’s, and took Y2K into account. TASE Vice President for Computers & Operations Yoni Shemesh concluded that "the millennium readiness of TASE systems and interfaces with member firms’ systems is high". The tests simulate the first trading day, January 2, as well as other "special" dates, such as February 29, month ends, and expiry dates of the TA-25 index derivatives.
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New regulations, approved by the Ministry of Finance and the Knesset, require all traded companies, mutual funds and portfolio managers to report their Y2K preparations. The regulations set out a unified reporting framework, providing full disclosure as required by the Securities Law. Israeli companies will include statements regarding their millennium readiness in their 1998 annual reports, and in their quarterly reports in 1999. The Bank of Israel’s Supervisor of Banks, Dr. Yitzhak Tal, recently established a year-2000-testing committee to coordinate the system testing of Israel’s major banks. The committee will also discuss cooperation and mutual back-up.
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Further information can be obtained by visiting the TASE Web site, at www.tase.co.il.
Published by Israel's Business Arena on January 26, 1999