Bank Leumi Launches Market-Making Program to Boost Liquidity on TASE

Introduction

On September 15, 2025, the Tel Aviv Stock Exchange (TASE) announced a groundbreaking development in its market operations with the announcement of Bank Leumi's participation in a tailor-made market-making program. This initiative makes Bank Leumi the first financial institution to appoint designated market makers for both its shares and the listed Leumi equity options, creating a new dynamic in the Israeli finance landscape.

What the Program Entails

The innovative market-making program is tailored specifically to meet the needs of public companies seeking enhanced liquidity for their financial instruments. Bank Leumi has chosen two prestigious financial firms, Idan Financial Instruments of the Barak Capital Group and Proxima Dynamics, to serve as designated market makers. This inclusion elevates the total number of active market makers in TASE to seven, enriching liquidity enhancement initiatives.

Bank Leumi stands at the forefront of this initiative with a market cap of NIS 95 billion, making its shares the most liquid on TASE. With a substantial average daily trading volume of NIS 212 million over the past 90 trading days, the expectation is set high for the impact of this program.

Goals of the Market-Making Program

The primary aim of introducing this tailor-made approach is to significantly improve the accessibility and attractiveness of Bank Leumi's shares for various investor profiles, including institutional and international investors, as well as retail participants. By increasing the quoted volumes in the order book and narrowing the spreads, TASE strives to align its practices closer to international standards.

Each of the appointed market makers will be expected to maintain daily quotes in Bank Leumi's shares. They must ensure a minimum trade volume of NIS 500,000 while limiting price spreads to a maximum of 0.2%. This commitment is unprecedented on TASE and is expected to amplify the liquidity levels surrounding Bank Leumi’s shares.

Benefits for Investors

The anticipated effects of this innovative market-making program include reduced trading costs for investors, enhanced liquidity of Bank Leumi shares, and improved overall attractiveness for both institutional and retail investors. Through increased competition among market makers, the initiative not only facilitates higher commitment but also aims to deepen market engagement.

Moreover, with the official start date of this program set for September 17, 2025, it is projected to run for a full year. Following this, the market-making program for Leumi’s stock options is scheduled to commence on November 2, 2025, also for an entire year period.

Conclusion

By creating a robust market-making structure, Bank Leumi and TASE are taking a significant step toward enhancing liquidity in Israel’s capital markets. The integration of international practices provides a fresh outlook on investment opportunities within the country and positions Bank Leumi as a leader in financial innovation on TASE. The commitment of TASE and Bank Leumi to this tailor-made model sets a precedent that could pave the way for similar initiatives across various sectors in the future, inviting a broader spectrum of investors into Israel's bustling financial scene.

For further details about this initiative, stakeholders can contact Orna Goren, Head of the Communication and Public Relations Unit at TASE.