As the strategic plan for the years 2017-2022 was successfully completed, the Tel-Aviv Stock Exchange (TASE: TASE) published its new strategic plan for the years 2023-2027, following its approval by the Board of Directors of TASE, at the recommendation of TASE’s management, headed by the CEO, Ittai Ben-Zeev.
The new strategic plan was formulated in preparation for the conclusion of TASE’s previous strategic plan, orchestrated by the CEO, Ittai Ben-Zeev, upon taking office. The 4 principal achievements of the plan: positioning TASE as a key active player in the Israeli capital market, transition from a non-profit to a profitable public company, proof of competence in the development of services and selling processes as well as organizational streamlining, including improvement of the management flexibility.
These are reflected, among others, in strong financial results with a more than double profit margin – from 9% in 2017 to close to 25% in the first half of 2022, and a growth in revenue from services of 7.5% a year over the years 2017-2022, compared to an increase of only 4% a year in the operating cash outflow during the same period.
The strategic goals of the new plan include:
a. Developing and enhancing the value proposition of TASE’s core activity.
b. Expanding and developing the direct engagement with the end customers.
c. Creating a platform for digital assets using Blockchain (DLT) and venturing into Crypto.
d. Development and sale of technological services and solutions to other exchanges and market participants.
“The next five years are a critical window of opportunity for TASE to play an active role in the technological revolution of the global capital markets; the plan anticipates the needs of the market and takes the development and management of innovative services and products to the next level; we will not only partake in the change but aim to spearhead it; we will leverage our home court advantage in Israel to adopt and develop Fintech and position TASE as a hub of services and products. TASE will also build up the local capital market’s activity to match Israel’s economic strength and global activity, utilizing this unique opportunity for growth and expansion of its activity.” Ittai Ben Zeev CEO of TASE, said in a statement.
As part of the approval of the new strategic plan, the management of TASE has set a revenue CAGR from organic growth of 10%-12% over the next five years.
The plan is based on an in-depth analysis of the trends and developments in TASE’s business environment and in the markets. Most notable among these are the macroeconomic status of the State of Israel, the globalization of the financial markets, the competition among global financial centers, alongside regulation that advances the removal of barriers, global standardization, increase in the institutional money supply, and a significantly greater retail engagement in the capital market, mainly as a result of the growing digitalization, the development of investment tools, the removal of entry barriers and more. Also noteworthy are digital innovation trends that blur the borders between the regulated capital markets and the alternative markets, changes in local regulation and a rising interest environment that affects liquidity and investors’ preferences, TASE said.
Established in Israel in September 1953, TASE plays a central role in the Israeli economy and provides a market infrastructure that is central to the economy’s growth. As of August 1, 2019, the Tel Aviv Stock Exchange is a TASE traded public company, following its IPO at the end of July 2019. At that time, TASE floated 31.7% of its shares to foreign and Israeli institutional investors and to the public at large.