Tel Aviv Stock Exchange Ltd. — Earnings Release 2020

Nov 24, 2020

THE TEL-AVIV STOCK EXCHANGE LTD. REPORTED THIRD QUARTER 2020 RESULTS

November 24, 2020 (Tel Aviv) -Tel Aviv Stock Exchange Ltd (TASE:TASE) today announced its financial results for the third quarter ended September 30, 2020.¹

1. General

1.1 TASE's Results, Business and Corporate Highlights for the Third Quarter and the Nine-Month Period Ended September 30, 2020 Results:

• Revenue amounted to NIS 72 million in the third quarter of 2020, an increase of 9% over the corresponding quarter last year. The increase in revenue is attributed to all of the company's activities and especially to the increase in trading volumes following the coronavirus crisis.
• Adjusted EBITDA increased in the third quarter of 2020 to NIS 19.3 million, compared to NIS 17.0 million in the corresponding quarter last year, an increase of 14%.
• Financing expenses totaled to NIS 0.9 million in the third quarter of 2020, compared to financing income of NIS 3.1 million in the corresponding quarter last year. The transition to financing expenses in the quarter is due to a negative yield on the Company's investments in Israeli Governments bonds. Adjusted net profit amounted to NIS 5.6 million in the third quarter of 2020, compared to adjusted net profit of NIS 7.2 million in the corresponding quarter last year, a decrease of 22%.

BUSINESS HIGHLIGHTS

• The daily average trading volume of shares amounted to approximately NIS 1.70 billion, compared to NIS 1.37 billion in the third quarter last year, an increase of 24%.
• The daily average trading volume of bonds amounted to approximately NIS 3.59 billion in the third quarter of 2020, compared to NIS 3.72 billion in the third quarter last year, a decrease of 3%.
• The daily average trading volume of derivatives amounted to 166.6 thousand units a day in the third quarter of 2020, compared to 158.6 thousand units in the third quarter of 2019, an increase of 5%.
• In the third quarter of 2020, NIS 107.3 billion was raised on TASE in government bonds, corporate bonds, T-bills and shares. This represents an increase of 22% over the corresponding quarter last year, emphasizing how crucial TASE's services are for the State of Israel and for the business sector in Israel.
• Since the beginning of the year until the reporting date, there were 15 IPO's on TASE (6 of which in the third quarter). Additionally, more than 30 corporations, mostly in the high-tech sector, are in various stages towards IPOs that may come to fruition in the coming months (it should be noted that there is no certainty that the aforesaid drafts will evolve into an approved prospectus for issuance and/or listing).

¹ The Board of Directors of TASE today approved the Condensed Consolidated Financial Statement as of September 30, 2020. The consolidated financial statements of the Company were prepared in accordance with IFRS GAAP. This is an English translation of parts of the information included in the approved financial statements. In the event of any discrepancy between the original Hebrew and the translation to English, the Hebrew version alone will prevail. The consolidated financial statements in the English Version will be published on the website by the end of December.

1.2 CORPORATE HIGHLIGHTS

• TASE UP At the reporting date, the Company is working to expand trading operations on the "TACT-Institutional" platform, including investment in marketing and promotion of activities therein under the brand name "TASE UP". Within this framework, the same format of activity was extended to include the shares and participation units of other entities that qualify for institutional trading (this in addition to the bonds of the various entities traditionally traded in this platform). Accordingly, in August 2020, the Company announced the encouragement of activity in this track by joining and collaborating with local and international bodies that are engaged in data distribution, analysis and financial brokerage in relation to investments.
• Central Lending Pool On November 2, 2020, the Company launched the central lending pool, having completed the trial operation of the Blockchain operating platform.
• API In January 2020, the Securities Authority approved an amendment to the TASE Regulations concerning the distribution of data products that are derived from the trading systems of TASE and are automatically disseminated via API. Consequently, in September 2020 the Company announced the launch of the first data products using this interface, including daily and historical data of the composition of the monetary turnover of securities, comprising the overall aggregate monetary transactions performed by public institutions and mutual funds in the securities listed on TASE.
• Clearing Services for Non-Listed Securities of Private Limited Partnerships in July 2020, the Company informed TASE members that it intends to launch a service for the listing and clearing of investment units in partnerships that constitute private investment funds and alternative investment products, including the creation and redemption of such units. As part of this service, investors in such entities will be able to purchase and sell their units through TASE-CH and, within the investment period, their investment will be presented to them as part of their total securities portfolio with the TASE member. The purpose of this notification was to allow TASE members to make adjustments to their systems as necessary for the provision of this service to their clients. The service is expected to be launched in 2021.
• On November 23, 2020, the Company announced that it is conducting negotiations with a group of investors for the promotion of a joint venture for the development, installation and maintenance of a trading system in securities, based primarily on knowhow and technology in possession of the Company, for a foreign corporation, designated to engage in the management of a stock exchange in Ukraine. It should be noted, that the Company and the investors are in contact with the Ukrainian securities regulator regarding this venture.
• Working environment during 2020 the trading and clearing systems of TASE operated optimally, thereby facilitating reliable and stable trading, at record turnovers boosted by the coronavirus outbreak. To ensure the continuous operation of TASE systems, including the trading and clearing systems, TASE created a safe work environment for its employees, alongside the implementation of remote work procedures.

1.3 Seasonality

The Company's revenues from trading and clearing are affected, among other things, by the number of trading and clearing days. In 2020, there were 62 trading days in the third quarter, equal to the number of days in the corresponding quarter last year. In the first Nine months of 2020, there were 182 trading days, compared to 185 trading days in the corresponding period last year – a 1.6% decrease.

2. Presented below is information relating to the results for the third quarter of 2020 (NIS, in thousands)

Three Months Ended September 30, 2020 Compared with Three Months Ended September 30, 2019 Statement of Profit or Loss

	Quarter ended		Difference
	30.09.2020	30.09.2019	Amount	%
Revenue from services	72,030	66,048	5,982	9%
Costs	64,069	60,287	3,782	6%
Profit before financing income, net	7,961	5,761	2,200	38%
Financing income (expenses)	)900(	3,065	)3,965(	)129%(
Taxes on income	1,692	2,021	)329(	)16%(
Net profit	5,369	6,805	)1,436(	)21%(
% of total revenue from services for the quarter	7.5%	10.3%

Adjusted net profit and adjusted EBITDA data²

	Quarter ended		Difference
Adjusted EBITDA for the quarter:	30.09.2020	30.09.2019	Amount	%
Profit before financing income (expenses), net	7,961	5,761	2,200
Share-based payments expenses	250	432	(182)
Depreciation and capital losses	11,127	10,815	312
Adjusted EBITDA for the quarter	19,338	17,008	2,330	14%
% of total revenue from services for the quarter	26.8%	25.8%
Adjusted net profit for the quarter:
net profit	5,369	6,805	)1,436(
Share-based payment expenses	250	432	(182)
Adjusted net profit	5,619	7,237	)1,618(	)22%(
% of total revenue from services for the quarter	7.8%	11.0%

² Adjusted data for the profit and EBITDA (operating profit before interest, tax, depreciation and amortization): These data are based on the data in the Company's financial statements for the reported periods, after eliminating the effects of certain events and factors, as explained above, that are not typical of the Company's operating activities.

It is hereby clarified that the data presented above are not presented in accordance with generally accepted accounting principles and do not reflect the Company's cash flows from operating activities or its operating profits and net profit and, accordingly, do not constitute a substitute to the data in the Company's financial statements regarding the operating profit and/or the net profit. Nevertheless, in the Company's opinion, these data enable a better comparison to be made of the Company's performance in the reported periods.

The revenue in the third quarter of 2020 – below is the composition of the quarter's revenue, compared to the corresponding quarter last year:

		% Change
Revenue from services:	30.09.2020	% of the Company's total revenues	30.09.2019	% of the Company's total revenues
	31,097	43%	28,193	43%	10%
Trading and clearing commissions	The increase was due mainly to the higher trading volumes on TASE following the coronavirus crisis. The higher trading volumes in shares accounted for close to 9%, while the increased trading volumes in corporate bonds contributed close to 1% of the increase in total revenue from trading and clearing services.
Listing fees and levies	14,856	21%	13,508	20%	10%
	The increase is due to the increase in revenue from examination fees in light of the growth in the number of prospectuses, which contributed 4% to the increase in total revenue from listing fees and levies. In addition, an increase in revenue from listing fees, an increase in the charging of new annual fees prescribed in 2019 and 2020 and an increase in existing fees, each contributed 2% to the increase in total revenue from listing fees and levies.
Clearing House services	13,952	19%	12,918	19%	8%
	The increase is due to an increase in existing Clearing House services, which contributed 5% to the increase in total revenue from Clearing House services, and to new Clearing House services to companies, which contributed 3% to the increase in total revenue from Clearing House services.
Distribution of data and	11,738	16%	10,422	16%	13%
connectivity services	The data distribution activity reflects the implementation of the information usage model initiated in early 2019. An increase in revenue from private and business customers contributed 6% and 2%, respectively, to the increase in total revenue from data distribution and connectivity services. Additionally, the Company started charging business customers for data previously distributed free of charge, a measure that accounted for 3% of the increase in total revenue from data distribution and connectivity services (of which close to 2% relates to services that were received in prior periods). Furthermore, the launch of the colocation and BSO activities in 2019 contributed 2% to the increase in total revenue from data distribution and connectivity services.
Other revenue	387	1%	1,007	2%	(62%)
				Most of the decrease derives from the shutting down of the Conference Center activities commencing in March 2020 as a result of the coronavirus outbreak.
Total Revenue from services	72,030	100%	66,048	100%	9%

• The costs in the third quarter of 2020 totaled approximately NIS 64.1 million, compared to costs of approximately NIS 60.3 million in the corresponding quarter last year, an increase of close to 6.3% between the quarters. The increase in costs is due mainly to the increase in employee benefits expenses (close to 3.2% of total costs), as a result of a reduction in the utilization of vacation days in the quarter due to the coronavirus outbreak and as a result of salary updates, as well as to the increase in marketing expenses (close to 1.6% of total costs) as a result of the timing of marketing campaign launches in the quarters.
• Financing expenses in the third quarter of 2020 totaled approximately NIS 0.9 million, compared to financing income of approximately NIS 3.1 million in the corresponding quarter last year. The transition to financing expenses in the quarter is due to a negative yield of close to 0.4%, resulting from the fall in prices of securities, on the Company's investments that are managed in marketable securities' portfolios comprising Israeli Government bonds, compared to a positive yield of close to 1.5% in the corresponding quarter last year.
• The net profit in the third quarter of 2020 totaled approximately NIS 5.4 million, compared to approximately NIS 6.8 million in the corresponding quarter last year, a decrease of close to 21%. The decrease in profit was due to higher expenses and the transition to financing expenses, as described above, which were partly offset by the increase in revenue from services, primarily trading and clearing revenue.
• The adjusted EBITDA in the third quarter of 2020 totaled approximately NIS 19.3 million, compared to approximately NIS 17 million in the corresponding quarter last year, an increase of close to 14% between the quarters. The increase is due to higher revenue from services, which was partly offset by an increase in costs, primarily employee benefits costs and marketing costs.
• The adjusted net profit in the third quarter of 2020 totaled approximately NIS 5.6 million, compared to approximately NIS 7.2 million in the corresponding quarter last year, a decrease of close to 22% between the quarters. The decrease is due mainly to the transition to financing expenses and to higher costs, primarily employee benefits and marketing costs, which were partly offset by an increase in revenue from services.

Nine months ended September 30, 2020 Compared with Nine months ended September 30, 2019

Presented below is condensed information relating to the results for the Nine-month period ended September 30, 2020 (NIS, in thousands):

Condensed Statement of Profit or Loss

	Nine months ended		Difference
	30.09.2020	30.09.2019	Amount	%
Revenue from services	226,784	193,585	33,199	17%
Costs	191,597	182,974	8,623	5%
Profit before financing income, net	35,187	10,611	24,576	232%
Financing income (expenses)	)1,802(	9,371	)11,173(	)119%(
Taxes on income	7,756	5,254	2,502	48%
Net profit	25,629	14,728	10,901	74%
% of total revenue from services for the period	11.3%	7.6%

Adjusted net profit and adjusted EBITDA data³

	Nine months ended		Difference
	30.09.2020	30.09.2019	Amount	%
Adjusted EBITDA for the period:
Profit before financing income, net	35,187	10,661	24,576
Share-based payments expenses	1,034	3,440	(2,406)
Depreciation and capital losses	32,984	33,793	(809)
Adjusted EBITDA for the period	69,205	47,844	21,361	45%
% of total revenue from services for the period	30.5%	24.7%
Adjusted net profit for the period:
Net profit	25,629	14,728	10,901
Share-based payments expenses	1,034	3,440	(2,406)
Adjusted net profit	26,663	18,168	8,495	47%
% of total revenue from services for the period	11.8%	9.4%

³ Adjusted data for the profit and EBITDA (operating profit before interest, tax, depreciation and amortization): These data are based on the data in the Company's financial statements for the reported periods, after eliminating the effects of certain events and factors, as explained above, that are not typical of the Company's operating activities.

It is hereby clarified that the data presented above are not presented in accordance with generally accepted accounting principles and do not reflect the Company's cash flows from operating activities or its operating profits and net profit and, accordingly do not constitute a substitute to the data in the Company's financial statements regarding the operating profit and/or the net profit. Nevertheless, in the Company's opinion, these data enable a better comparison to be made of the Company's performance in the reported periods.

The revenue in the Nine months ended September 30, 2020 below is the composition of the period's revenue, compared to the corresponding period last year:

	Nine months ended				Difference
	30.09.2020	% of the Company's total revenues	30.09.2019	% of the Company's total revenues	% Change
Revenue from services:	102,964	45%	80,661	42%	28%
Trading and clearing commissions	The increase primarily reflects the higher trading volumes on TASE following the coronavirus outbreak. The higher trading volumes in shares accounted for close to 16% of the increase in total revenue from trading and clearing services, while the increased trading volumes in corporate bonds and derivatives accounted for an increase in trading and clearing revenue of close to 4% and 3%, respectively; other factors were the higher trading volumes in government bonds and the creations/redemptions in mutual funds that each contributed 2% to the increase in total trading and clearing revenue, and a further increase of close to 1% due to increased trading volumes in T-bills.
Listing fees and levies	44,598	19%	40,469	21%	10%
	The increase is due to the increase in revenue from prospectus examination fees, which contributed 4% to the increase in total revenue from listing fees and levies. In addition, an increase in the charging of new annual fees prescribed in 2019 and 2020, higher revenue from existing fees and the recognition of revenue from listing fees, each contributed close to 2% to the increase in total revenue from listing fees and levies.
Clearing House services	42,447	19%	38,147	20%	11%
	3%	from Clearing House services.		The increase is due to an increase in Clearing House services to members, primarily following the coronavirus outbreak which contributed close to 7% to the increase in total revenue from Clearing House services, from new Clearing House services which contributed close to and an increase in revenue from Clearing House services to companies which contributed close to 1% to the increase in total revenue
Distribution of data and connectivity	35,536	16%	31,731	16%	12%
services	Company connectivity services.			The data distribution activity reflects the implementation of the information usage model initiated in early 2019. An increase in revenue from private customers contributed close to 5% to the increase in total revenue from data distribution and connectivity services. Additionally, the started charging business customers for data previously distributed free of charge, a measure that accounted for 3% of the increase in total revenue from data distribution and connectivity services (of which half relates to services provided in prior years). Furthermore, the launch of the colocation and BSO activities in 2019 contributed close to 3% to the increase in total revenue from data distribution and
Other revenue	1,239	1%	2,577	1%	(52%)
	Most of the decrease derives from the shutting down of the Conference Center activities commencing in March 2020 as a result of the coronavirus outbreak.
Total Revenue from services	226,784	100%	193,585	100%	17%

• Expenses in the period, less the effect of share-based payments expenses, totaled approximately NIS 190.6 million, compared to expenses of approximately NIS 179.5 million in the corresponding period last year, an increase of 6.2% between the periods. The increase in costs was due mainly to the increase in employee benefits expenses (close to 4% of total costs), to salary updates and variable remuneration that is affected by the increase in the profit in the first nine months of 2020 and a reduction in the utilization of vacation days in the period due to the coronavirus outbreak, to an increase in marketing expenses (close to 1.2% of total costs), as a result of the timing of the performance of marketing activities, and to an increase in computer expenses (close to 1.2% of total costs), due primarily to costs of new systems that have been activated.
• Financing expenses totaled NIS 1.8 million, compared to financing income of NIS 9.4 million in the corresponding period last year. The transition to financing expenses in the period is due to a negative yield of close to 0.6%, resulting from the effects of the coronavirus outbreak on TASE trading and the fall in prices of securities, on the Company's investments that are managed in marketable securities' portfolios comprising of Israeli Government bonds, compared to a positive yield of close to 4.9% in the corresponding period last year.
• Net profit for the period amounted to NIS 25.6 million, compared to NIS 14.7 million in the corresponding period last year, an increase of 74%. The increase in profit was due mainly to higher revenue from services, primarily trading and clearing services, and was partly offset by higher costs and by the transition to financing expenses, as described above.
• The adjusted EBITDA for the nine months totaled approximately NIS 69.2 million, compared to approximately NIS 47.8 million in the corresponding period last year, an increase of close to 45% between the periods. The increase is due to higher revenue from services, and was partly offset by an increase in costs, primarily employee benefits costs.
• The adjusted net profit for the nine months totaled approximately NIS 26.7 million, compared to approximately NIS 18.2 million in the corresponding period last year, an increase of close to 47% between the periods. The increase is due mainly to higher revenue from services, and was partly offset by the transition to financing expenses and the higher costs, as described above.

Presented below is information relating to the financial position as of September 30, 2020 (NIS, in thousands):

	As of		Difference
	30.09.2020	30.09.2019	Amount	%
Cash and cash equivalents and short-term financial assets	342,703	308,892	33,811	11%
Other current assets	25,901	20,362	5,539	27%
Property and equipment and intangible assets	450,667	457,543	)6,876(	)2%(
Other non-current assets	17,931	18,363	)432(	)2%(
Total assets (*)	837,202	805,160	32,042	4%
Current liabilities	90,460	81,876	8,584	10%
Non-current liabilities	126,647	124,577	2,070	2%
Total liabilities (*)	217,107	206,453	10,654	5%
Total equity	620,095	598,707	21,388	4%
Ratio of equity to total assets	74.1%	74.4%
Surplus equity over regulatory requirements in NIS millions	292	282	10	4%
Surplus liquidity over regulatory requirements in NIS millions	153	132	21	16%

• (*) The total assets and liabilities as of September 30, 2020 and December 31, 2019, include a balance of assets/liabilities with respect to open derivative positions amounting to NIS 303.2 million and NIS 351.7 million, respectively, which for reasons of convenience in analyzing the financial position have been offset against each other in this report.
• The total assets as of September 30, 2020 amounted to NIS 837.2 million, a 4% increase compared to December 31, 2019. Most of the increase is due to an increase in cash from operating activities.
• The total liabilities as of September 30, 2020 amounted to NIS 217.1 million, a 5% increase compared to December 31, 2019. Most of the increase is due to annual fees collected in advance.
• The total equity as of September 30, 2020 amounted to NIS 620.1 million, a 4% increase compared to December 31, 2019. Most of the increase is due to the profit of NIS 25.6 million for the first nine months of 2020 and to receipts of NIS 3.7 million from shareholders within the framework of the ownership restructuring, which were partly offset by a dividend distribution of NIS 8.8 million.

Presented below are cash flows for the three months ended September 30, 2020 (NIS, in millions):

Item		Data for the three months ended September 30		Explanations of the Company
		2020	2019	for the inter-quarter change
Net cash from operating activities	Adjusted EBITDA	19.3	17.0	The increase in adjusted EBITDA is due mainly to an increase in revenue from services, primarily trading and clearing services, and was partly offset by an increase in expenses, due to the mostly fixed structure of expenses.
	Changes in working capital	(10.4)	(5.1)	The increase in negative working capital is due to the timing of payments and receipts between the quarters, primarily with respect to employee benefits and other receivables.
	Financing and tax	(1.4)	0.9	The decrease stems mainly from higher tax payments, net in the quarter, compared to the corresponding quarter last year.
	Total	7.5	12.8	Cash flows from operating activities decreased by close to 41% between the quarters.
Net cash for investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(6.4)	(6.5)
	Disposal (acquisition) of financial assets, net	(0.8)	0.3
	Total	(7.2)	(6.2)
Net cash from financing activities	Lease payments	(2.4)	(2.5)
	Receipts from shareholders within the framework of listing and the ownership restructuring	3.7	22.2	Receipts of NIS 3.7 million received within the framework of implementing the ownership restructuring in the period. In the corresponding period last year, receipts of NIS 15.6 million were received within the framework of the secondary offering of the shares and their initial listing, as well as a further NIS 6.6 million received from the sale of shares within the framework of implementing the TASE ownership restructuring.
	Total	1.3	19.7
	Total increase in cash and cash equivalents	1.6	26.3

Presented below are cash flows for the Nine months ended September 30, 2020 (NIS, in millions):

Item		Data for the Nine months ended September 30,		Explanations of the Company for the inter-half-year change
		2020	2019
Net cash from operating activities	Adjusted EBITDA	69.2	47.8	The increase in adjusted EBITDA is due mainly to an increase in revenue from services, primarily trading and clearing services, and was partly offset by an increase in expenses, due to the mostly fixed structure of expenses.
	Changes in working capital	8.6	1.3	The increase in working capital is due to the timing of payments and receipts between the periods, primarily with respect to employee benefits and other receivables.
	Financing and tax	(2.7)	6.7	The change stems mainly from tax payments in the period, compared to tax receipts, net in the corresponding period and a reduction in interest received.
	Total	75.1	55.8	Cash flows from operating activities grew by close to 35% between the periods.
Net cash for investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(23.5)	(24.4)
	Acquisition of financial assets, net	(2.8)	(29.2)	In the first nine months of 2019, approximately NIS 27 million was deposited into the managed portfolios.
	Total	(26.3)	(53.6)
	Lease payments	(7.4)	(7.3)
Net cash for (from) financing activities	Dividend payment	(8.8)	-
	Receipts from shareholders within the framework of listing and the ownership restructuring	3.7	22.2	Receipts of NIS 3.7 million received in the period within the framework of implementing the ownership restructuring in the period. In the corresponding period last year, receipts of NIS 15.6 million were received within the framework of the secondary offering of the shares and their initial listing, as well as a further NIS 6.6 million received from the sale of shares within the framework of implementing the TASE ownership restructuring.
	Total	(12.5)	14.9
Total increase in cash and cash equivalents		36.3	17.1

3. Events at the reporting date and thereafter

3.1 Outbreak of the coronavirus - To the date of approval of the financial statements, the short-term significant negative effects of the coronavirus on the operating results of the Company cannot be estimated, as the Company is not directly affected by the prices of the securities, but rather by the trading and clearing turnovers of securities and derivatives, with the exception of fluctuations in the prices of government bonds, which could have a material effect on the operating results of the Company, most notably on the Company's financing gains/losses from its securities portfolios. The Company has an operational and technological solution in place that facilitates the operation of TASE and the Clearing House with a significantly lower number of employees that are required to be present at the sites of the Company for the operation of the core trading and clearing systems. It should be noted that the restrictions imposed in Israel thus far by virtue of the Emergency Regulations do not categorically prohibit the opening of workplaces, but rather stipulate various limitations that are primarily designed to reduce the number of employees in the workplaces and to encourage remote work, in both the public and the private sectors. At any rate, even the broadest application of the regulations exempts a number of employers, including those operating in the capital market, such as the Company (alongside banks, Stock Exchange members, fund managers, rating firms and more).

Moreover, the perseverance and exacerbation of this unprecedented global crisis could also adversely affect business and economic operations in Israel and worldwide, including the volumes of the investment and trading in securities, in a manner and to an extent that, at this stage, cannot be estimated and quantified by the Company. Nevertheless, it is not unreasonable to assume that the persistence and exacerbation of the uncertainty could lead to reduced volumes of activity in the primary market (both equity and debt) that will in turn entail a decline in revenues from examination and listing fees with respect to new securities. Furthermore, it is not unreasonable to assume that, in the event of erosion in the prices of listed securities towards the end of the year, the revenues of the Group from custodial services could be impacted to some extent, as these are derived from the value of the securities held, and if price levels are not corrected by the end of the year, this could adversely impact the volume of fees from companies in 2021, which are derived from the value of the securities listed as of December 2020. Additionally, persisting uncertainty, in general, and in the capital market, in particular, could defer the Company's launching of new products or services until the smoke clears. Finally, it should be noted that in the aftermath of the crisis recovery will be gradual. At this stage and in the absence of clear criteria for the implementation and continuity of the "exit strategy" that has been declared by the Israeli Government, the duration of the recovery period and the volumes of trading and capital-raising expected in said cannot be estimated, more so as these depend, among others, on the rate of economic recovery, on the volatility of the markets and the pace at which the public returns to invest, directly or indirectly, in securities that are listed on TASE.

The difficulties of making such an assessment are demonstrated by events in recent months, where the significant increase in sickness rates following the lifting of most restrictions led the Government to suspend the opening of the market and reinstate certain restrictions, culminating in the imposition of a near complete lockdown during the holidays. As sickness rates decreased, in the middle of October 2020 a plan was announced for the gradual lifting of restrictions based on predetermined sickness targets, which is yet subject to occasional changes. A similar scenario of a rise in morbidity rates and the reinstatement of restrictions on activities and businesses was witnessed in multiple countries. Such events emphasize the difficulties in assessing the duration of the crisis and/or the rate of recovery therefrom.

In view of the aforesaid and since, to the date of approval of the financial statements, the potential effects of the coronavirus crisis on the main income channels of the Company (trading and clearing commissions, custodial services etc.) stem primarily from the macro implications of the crisis on the local and the global economy, the Company is unable to quantify the extent of possible reduction in its income, in the event of the persistence and/or exacerbation of this crisis (and, as stated above, to the date of approval of the financial statements, such negative effects are not evident, with the exception of the more marginal revenue channels, such as revenue from the portfolio of investments in government bonds and revenue from the rental of space and holding of events).

3.2 Claim Against the Ministry of Finance Concerning Listing Fees - On May 5, 2020, the Company filed a monetary claim by summary procedure with the Tel Aviv District Court against the State of Israel, the Ministry of Finance - Accountant General, in an amount of approximately NIS 20.13 million (including VAT). The cause of the claim is default in payment of the listing fees payable by virtue of TASE Rules in respect of government bonds that had been issued in the period from May 2013 to March 2020 (inclusive) within the framework of the Ministry of Finance's lending pool.

At the reporting date, the Stated submitted a statement of defense, rejecting the arguments pf the Company. To remove any doubts, it is hereby clarified that, to date, the Company has not recognized in its financial statements income from the listing fees covered in the claim.

• 3.3 Ministry's lending pool - In July 2020, TASE-CH informed the Ministry of Finance that it does not wish to renew the agreement for the operation of the Ministry's lending pool beyond the additional year of the agreement. Accordingly, unless another understanding is reached, the agreement will terminate on September 3, 2021. In the opinion of the Company, in view of the consideration that is payable under said agreement, the termination of the agreement, in and of itself, is not expected to have a material effect on its business results.
• 3.4 Labor Dispute at TASE Declared by the New General Federation of Labor in Israel - On July 16, 2020, the New General Federation of Labor announced the cancellation of the labor dispute that was declared on September 17, 2018, this in view of the agreements in principle reached between TASE and TASE's employees committee. On the same date, the National Labor Tribunal ruled that, in view of the cancellation of the labor dispute by the Labor Federation and TASE's employees committee, as aforesaid, and considering the problematic points found in the ruling of the Regional Labor Tribunal from December 1, 2019, the ruling was overturned and, consequently, the appeal of the ruling has become redundant and was withdrawn, this at the recommendation of the Tribunal and at the consent of the parties.

On July 26, 2020, a special collective agreement (hereafter: "the special agreement") was signed between the Company, on the one hand, and the New General Federation of Labor ("Histadrut") and TASE's employees committee, on the other hand.

The special agreement provides, inter alia, for the distribution of annual bonuses to employees of the Company for the years 2017-2019. With the signing of the special agreement, the related labor dispute, too, has come to an end (pursuant to the cancellation of another labor dispute, as set above).

It should be noted that, considering the provisions that have been included in the financial statements of the Company to date, the special agreement has no effect on the financial results of the Company.

At the end of September 2020, the net grants were paid to the employees and in October the related tax and social benefits were paid. These payments resulted in a reduction in the cash flow from operating activities in the third and fourth quarters of the year.

• 3.5 Abu Dhabi Securities Exchange - On October 8, 2020, in response to media reports, the Company announced that it is currently negotiating a memorandum of understandings with the Abu Dhabi Securities Exchange (hereafter: "the MOU") concerning the establishment of an agreed framework for potential regional collaborations between the exchanges in their various areas of operation. As of the reporting date, the MOU is substantially formulated, but has yet to be signed. It should be clarified that the contemplated framework for the exploration of opportunities for collaborations between the parties is in very early stages and that, as of the reporting date, the MOU has not yet been signed and no such collaborations have been agreed upon.
• 3.6 During the first half of 2020, the Company launched media campaigns (on the Web, social networks, in printed press and in commercial broadcasting channels). The campaigns costs amounted to NIS 2.7 million. The Company plans to continue the marketing and distribution of its services at a similar scope in the second half of 2020.

4. Information relating to the results for the third quarter of 2020 (NIS, in thousands) CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	September 30,	December 31,
	2020	2019	2019
Assets
Current assets
Cash and cash equivalents	140,311	71,204	103,928
Financial assets at fair value through profit or loss	202,392	218,344	204,964
Trade receivables	12,755	13,736	13,776
Other receivables	13,146	13,107	6,373
Current tax assets	-	210	213
	368,604	316,601	329,254
Assets derived from clearing operations with respect to open derivative positions	303,155	356,645	351,742
Total current assets	671,759	673,246	680,996
Non-current assets
Cash restricted as to use	542	540	541
Other long-term receivables	2,477	3,643	3,761
Property and equipment, net	333,111	(*)346,672	345,176
Intangible assets, net	117,556	109,264	112,367
Deferred tax assets	14,912	13,173	14,061
Total non-current assets	468,598	473,292	475,906
Total assets	1,140,357	1,146,538	1,156,902

(*) Reclassification

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	September 30,	December 31,
	2020	2019	2019
Liabilities and Equity
Current liabilities
Trade payables	14,112	8,119	15,376
Short-term liabilities for employee benefits	36,447	29,727	33,121
Other payables	2,745	2,832	3,301
Current maturities of lease liabilities	5,843	9,514	9,728
Current tax liabilities	3,056	1,622	970
Deferred income from listing fees and levies	28,257	26,384	19,380
	90,460	78,198	81,876
Liabilities derived from clearing operations with respect to open derivative positions	303,155	356,645	351,742
Total current liabilities	393,615	434,843	433,618
Non-current liabilities
Non-current liabilities for employee benefits	39,775	35,500	37,565
Lease liabilities	9,860	14,330	12,553
Deferred tax liability	-	151	-
Deferred income from listing fees and levies	76,470	71,815	73,918
Other liabilities	542	540	541
Total non-current liabilities	126,647	122,336	124,577
Equity
Remeasurement of net defined benefit liability	(17,133)	(15,789)	(16,905)
Share-based payments reserve	32,272	30,820	31,238
Other capital reserves	46,802	35,863	43,079
Retained earnings	558,154	538,465	541,295
Total equity	620,095	589,359	598,707
Total liabilities and equity	1,140,357	1,146,538	1,156,902

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

(NIS, in thousands)

	Nine months ended September 30,		Three months ended September 30,		Year ended December 31,
	2020	2019	2020	2019	2019
Revenue from services:
Trading and clearing commissions	102,964	80,661	31,097	28,193	107,000
Listing fees and levies	44,598	40,469	14,856	13,508	54,678
Clearing House services	42,447	38,147	13,952	12,918	52,331
Distribution of data and connectivity services	35,536	31,731	11,738	10,422	42,419
Other revenue	1,239	2,577	387	1,007	3,573
Total revenue from services	226,784	193,585	72,030	66,048	260,001
Cost of revenue:
Employee benefits expenses	105,948	98,675	34,989	33,088	132,973
Share-based payments expenses	1,034	3,440	250	432	3,858
Computer and communications expenses	19,874	17,671	6,736	6,320	23,819
Property taxes and building maintenance expenses	8,487	9,174	3,076	3,075	12,602
General and administrative expenses	7,084	6,331	2,504	2,153	9,122
Marketing expenses	8,104	5,916	2,693	1,746	7,858
Fee to the Israel Securities Authority	8,082	7,974	2,694	2,658	10,680
Depreciation and amortization	32,965	32,514	11,126	10,809	43,571
Other expenses	19	1,279	1	6	1,358
Total costs	191,597	182,974	64,069	60,287	245,841
Profit before financing income, net	35,187	10,611	7,961	5,761	14,160
Financing income	(1,193)	10,024	(735)	3,286	9,975
Financing expenses	609	653	165	221	1,006
Total financing income (expenses), net	(1,802)	9,371	(900)	3,065	8,969
Profit before taxes on income	33,385	19,982	7,061	8,826	23,129
Taxes on income	7,756	5,254	1,692	2,021	5,571
Profit for the period	25,629	14,728	5,369	6,805	17,558
Basic earnings per share (NIS)	0.256	0.147	0.053	0.068	0.176
Diluted earnings per share (NIS)	0.250	0.147	0.052	0.067	0.174

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (NIS in thousands)

	Nine months ended September 30, 2020
	Share-based payments reserve	Remeasure ment of net defined benefit liability	Other capital reserves	Retained earnings	Total
Balance at January 1, 2020	31,238	(16,905)	43,079	541,295	598,707
Profit for the period	-	-	-	25,629	25,629
Other comprehensive loss for the period	-	(228)	-	-	(228)
Total comprehensive income (loss) for the period	-	(228)	-	25,629	25,401
Dividend paid	-	-	-	(8,770)	(8,770)
Share-based payment	1,034	-	-	-	1,034
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	3,723	-	3,723
Balance at September 30, 2020	32,272	(17,133)	46,802	558,154	620,095

	Three months ended September 30, 2020
	Share-based payments reserve	Remeasure ment of net defined benefit liability	Other capital reserves	Retained earnings	Total
Balance at July 1, 2020	32,022	(11,423)	43,079	552,785	616,463
Profit for the period	-	-	-	5,369	5,369
Other comprehensive loss for the period	-	(5,710)	-	-	(5,710)
Total comprehensive income (loss) for the period	-	(5,710)	-	5,369	(341)
Share-based payment	250	-	-	-	250
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	3,723	-	3,723
Balance at September 30, 2020	32,272	(17,133)	46,802	558,154	620,095

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands)

	Nine months ended September 30,		Three months ended September 30,	Year ended December 31,
	2020	2019	2020	2019	2019
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period	25,629	14,728	5,369	6,805	17,558
Share-based payments expenses	1,034	3,440	250	432	3,858
Tax expenses recognized in profit or loss	7,756	5,254	1,692	2,021	5,571
Net financing expenses (income) recognized in profit or loss	1,802	(9,371)	900	(3,065)	(8,969)
Depreciation and amortization	32,965	32,514	11,126	10,809	43,571
Loss from disposal of property and equipment and intangible assets	19	1,279	1	6	1,358
	69,205	47,844	19,338	17,008	62,947
Changes in asset and liability items:
Decrease (increase) in trade receivables and other receivables	(4,451)	(7,997)	(815)	1,736	(607)
Decrease in receivables with respect to open derivative positions	48,587	538,756	159,251	553,541	543,659
Increase (decrease) in trade payables and other payables	(3,631)	(3,357)	(1,237)	(1,998)	1,176
Increase (decrease) in deferred income from listing fees and levies	11,429	10,585	(5,062)	(6,405)	5,726
Decrease in payables with respect to open derivative positions	(48,587)	(538,756)	(159,215)	(553,541)	(543,659)
Increase (decrease) in employee benefits related liabilities	5,240	2,073	(3,274)	1,518	6,083
	77,792	49,148	8,950	11,859	75,325
Interest received	4,192	5,110	2,278	1,805	6,110
Interest paid	(582)	(468)	(187)	(52)	(637)
Tax receipts (payments) - operating activities, net	(6,355)	2,107	(3,529)	(801)	332
	(2,745)	6,749	(1,438)	952	5,805
Net cash provided by operating activities	75,047	55,897	7,512	12,811	81,130

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands, cont'd)

	Nine months ended September 30,		Three months ended September 30,	Year ended December 31,
	2020	2019	2020	2019	2019
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(5,600)	(4,869)	(950)	(738)	(6,416)
Proceeds from the disposal of property and equipment	-	2	-	-	192
Acquisitions of intangible assets	(6,733)	(7,262)	(2,330)	(1,993)	(11,850)
Payments with respect to costs capitalized to property and equipment and to intangible assets	(11,106)	(12,272)	(3,096)	(3,724)	(15,838)
Acquisition of financial assets at fair value through profit or loss, net	(2,827)	(29,220)	(796)	253	(17,032)
Net cash used in investing activities	(26,266)	(53,621)	(7,172)	(6,202)	(50,944)
CASH FLOW FROM FINANCING ACTIVITIES:
Lease payments	(7,453)	(7,280)	(2,461)	(2,451)	(9,739)
Dividend payment	(8,770)	-	-	-	-
Company's share in the first-time listing of the shares	-	15,556	-	15,556	15,600
Receipts from shareholders within the framework of implementing the ownership restructuring, net	3,723	6,609	3,723	6,609	13,782
Net cash provided by (used in) financing activities	(12,500)	14,885	1,262	19,714	19,643
Net increase in cash and cash equivalents	36,281	17,161	1,602	26,323	49,829
Cash and cash equivalents, beginning of the period	103,928	54,363	138,658	44,953	54,363
Effect of changes in exchange rates on cash balances held in foreign currency	102	(302)	51	(72)	(264)
Cash and cash equivalents, end of the period	140,311	71,204	140,311	71,204	103,928
APPENDIX A – NON-CASH ACTIVITIES:
Acquisition of property and equipment and intangible assets, under short-term credit	6,131	1,170	6,131	1,170	4,320
Increase in right-of-use assets and lease liabilities	858	4,811	245	4,811	5,372
Increase (decrease) in receivables for lease and lease liabilities	17	-	-	-	2,256

Quarterly statements of profit or loss for 2019 and for the third quarter of 2020 (NIS, in thousands)

Item	Jan Mar 2019	Apr Jun 2019	Jul Sep 2019	Oct Dec 2019	Jan Mar 2020	Apr Jun 2020	Jul Sep 2020	2019
Number of trading days	63	60	62	59	63	57	62	244
Trading and clearing commissions	26,553	25,915	28,193	26,339	39,680	32,187	31,097	107,000
Listing fees and levies	13,483	13,478	13,508	14,209	14,977	14,765	14,856	54,678
Clearing House services	12,351	12,878	12,918	14,184	14,368	14,127	13,952	52,331
Distribution of data and connectivity services	11,639	9,670	10,422	10,688	11,615	12,183	11,738	42,419
Other revenue	601	969	1,007	996	567	285	387	3,573
Total revenue from services	64,627	62,910	66,048	66,416	81,207	73,547	72,030	260,001
Employee benefits expenses, net	33,536	32,051	33,088	34,298	36,391	34,568	34,989	132,973
Share-based payments expenses	-	3,008	432	418	414	370	250	3,858
Computer and communications expenses	5,736	5,615	6,320	6,148	6,288	6,850	6,736	23,819
Property taxes and building maintenance expenses	3,023	3,076	3,075	3,428	3,134	2,277	3,076	12,602
General and administrative expenses	1,747	2,431	2,153	2,791	2,375	2,205	2,504	9,122
Marketing expenses	3,736	434	1,746	1,942	1,430	3,981	2,693	7,858
Fee to the Israel Securities Authority	2,658	2,658	2,658	2,706	2,699	2,689	2,694	10,680
Depreciation and amortization expenses	10,606	11,099	10,809	11,057	10,871	10,968	11,126	43,571
Other expenses	694	579	6	79	18	-	1	1,358
Total costs of revenue	61,736	60,951	60,287	62,867	63,620	63,908	64,069	245,841
Profit before financing income, net	2,891	1,959	5,761	3,549	17,587	9,639	7,961	14,160
Financing income	4,266	2,472	3,286	)49(	)4,243(	3,785	)735(	9,975
Financing expenses	246	186	221	353	164	280	165	1,006
Total financing income (expenses), net	4,020	2,286	3,065	)402(	)4,407(	3,505	)900(	8,969
Profit before taxes on income	6,911	4,245	8,826	3,147	13,180	13,144	7,061	23,129
Taxes on income	1,494	1,739	2,021	317	2,950	3,114	1,692	5,571
Net profit	5,417	2,506	6,805	2,830	10,230	10,030	5,369	17,558

ABOUT TASE

The Company, including by means of the companies consolidated in its financial statements (collectively, "the Group"), is engaged in securities trading and securities clearing .

Within this framework, the Group is engaged in setting rules regarding the TASE companies, rules for listing securities on TASE (including the obligations that apply to companies whose securities are listed) and rules regarding trading on TASE. The Group operates trading systems and provides clearing services for both listed and non-listed securities. In addition, the Group operates a derivatives clearing house that writes derivatives that are traded on TASE, clears them and serves as a central counterparty for transactions in them. The Group provides central counterparty (CCP) services for transactions in securities and derivatives that are executed on TASE and also provides central securities depository (CSD) services. The Group engages in calculating security indices, in authorizing the use of indices for the creation of financial instruments that track the indices, and in distributing TASE trading data. In addition, since January 2018, the Group has been operating a nominee company, as defined in the Securities Law (securities traded on TASE are registered in the nominee company's name). The Company reports one business segment in its consolidated financial statements – trading and clearing of transactions in securities.

CONTACTS

Yehuda van der Walde		Orna Goren
EVP, CFO		Head of Communications and Public Relations Unit
Email:	cfo@tase.co.il	Email:	ir.tase@tase.co.il
Tel:	+972-76-8160442	Tel:	+972-76-8160405

Appendix – Transactional Metrics

	Nine months Ended September 30,		Quarter Ended September 30,	Year Ended December 31,
	2020	2019	2020	2019	2019
Number of trading days	182	185	62	62	244
SHARES
Shares (ex. ETFs)	714	780	714	780	820
ETFs on share indices	53	64	52.5	64	64
Market value (in NIS billions)	766	844	766	844	884
Shares (ex. ETFs)	1,503	1,043	1,357	1,144	1,081
ETFs on share indices	423	215	339	223	219
Average daily turnover (in NIS millions)	1,926	1,259	1,696	1,367	1,300
Average commissions	0.01049%	0.01032%	0.01070%	0.01027%	0.01022%
Revenue (in NIS thousands)	36,776	24,044	11,259	8,698	32,434
BONDS
Government bonds -Unlinked	328	275	328	275	275
Government bonds -Linked	269	262	269	262	257
Corporate bonds	383	410	383	410	411
Bonds (ex. ETFs)	980	946	980	947	943
ETFs on bond indices	29	29	29	29	29
Market value (in NIS billions)	1,010	975	1,010	976	972
Government bonds - Unlinked ADV (in NIS millions)	2,059	1,780	1,568	1,968	1,722
Government bonds - Linked ADV (in NIS millions)	1,168	921	1,097	940	897
Corporate bonds ADV excluding ETFs (in NIS millions)	967	766	794	708	798
ETFs on bond indices	158	92	132	105	95
Average daily turnover (in NIS millions)	4,352	3,559	3,591	3,721	3,512
Government bonds Unlinked - Average commissions	0.00187%	0.00191%	0.00192%	0.00189%	0.00192%
Government bonds Linked - Average commissions	0.00294%	0.00291%	0.00291%	0.00287%	0.00291%
Corporate bonds - Average commissions	0.00689%	0.00700%	0.00690%	0.00704%	0.00694%
Government bonds (in NIS thousands)	7,008	6,300	1,866	2,300	8,052
Government bonds (in NIS thousands)	6,246	4,953	1,982	1,674	6,367
Corporate bonds (in NIS thousands)	14,111	11,116	3,959	3,547	15,116
Other (MTS) (in NIS thousands)	104	158	29	59	187
Revenue (in NIS thousands)	27,469	22,527	7,836	7,581	29,722

Appendix -Transactional Metrics (Cont'd)

	Nine months Ended September 30,		Quarter Ended September 30,		Year Ended December 31,
	2020	2019	2020	2019	2019
TREASURY BILLS
Market value (in NIS billions)	91	120	91	120	120
Treasury bills ADV (in NIS millions)	688	411	482	452	413
Average commissions	0.00195%	0.00259%	0.00221%	0.00212%	0.00256%
Revenue (in NIS thousands)	2,439	1,964	660	595	2,581
MUTUAL FUNDS
Market value (in NIS billions)	224	248	224	248	259
Average daily value of creation / redemptions (in NIS millions)	1,117	876	772	868	883
Average commissions	0.00975%	0.01103%	0.01249%	0.01138%	0.01100%
Revenue (in NIS thousands)	19,826	17,867	5,978	6,127	23,716
DERIVATIVES
Options on indices	114.1	100	110.1	107.0	96.6
Derivatives on FX	56.6	43	53.6	47.4	45.4
Derivatives on single shares	3.1	3	2.9	4.2	3.1
Total derivative contracts (in '000 units)	173.8	146	166.6	158.6	145.1
Options on indices - Average commissions	0.580	0.580	0.580	0.580	0.580
Derivatives on FX -Average commissions	0.360	0.360	0.360	0.360	0.360
Derivatives on single shares Average commissions	1.000	1.000	1.000	1.000	1.000
Revenue (in NIS thousands)	16,454	14,259	5,364	5,192	18,546
Total revenue from Trading and clearing commissions	102,964	80,661	31,097	28,193	106,999

	Nine months Ended September 30,		Quarter Ended September 30,		Year Ended December 31,
	2020	2019	2020	2019	2019
CLEARING HOUSE SERVICES
Market value of assets (in NIS billions)	2,464	2,564	2,464	2,564	2,639
Avg. commissions on custodian fees	0.00110%	0.00105%	0.00110%	0.00105%	0.00105%
Revenue from: (in NIS thousands)
Custodian fees	19,693	19,564	6,625	6,691	26,534
Clearing House services for members / company events	19,072	15,121	6,024	5,090	21,160
Other	3,681	3,461	1,303	1,136	4,637
Total revenue from Clearing House services	42,447	38,147	13,952	12,918	52,331

Appendix – Non-Transactional Metrics (Cont'd)

	Nine months Ended September 30,		Quarter Ended September 30,		Year Ended December 31,
	2020	2019	2020	2019	2019
LISTING FEES AND LEVIES
Weighted avg. number of companies / funds
Companies	528	544	527	536	541
Mutual funds and ETFs	2,142	2,093	2,124	2,099	2,132
Avg. revenue from levies (in NIS thousands)
Companies	15.7	14.1	5.3	4.7	18.9
Mutual funds	5.7	5.5	1.9	1.8	7.2
Revenue from annual levies from: (in NIS thousands)
Companies	8,299	7,679	2,767	2,540	10,198
Mutual funds & ETFs	12,301	11,513	3,946	3,843	15,339
Nominee Company	2,273	1,706	772	588	2,530
Total Revenue from annual levies from: (in NIS thousands)	22,874	20,898	7,486	6,971	28,067
Issuance volume and swap transactions (in NIS millions)
Shares and Corporate bonds	66,425	65,451	24,705	27,049	91,415
Government bonds	119,753	67,923	55,580	24,843	86,115
Short term T-bills	71,934	95,736	26,986	35,922	131,684
Number of issuances
Tel Aviv public offerings	73	43	29	13	60
New offerings	12	6	6	2	7
New dual-listed companies	2	3	-	2	3
Issuance volume and funding
IPOs (in NIS millions)	2,136	2,706	1,136	514	3,206
New offerings (in NIS millions)	-	1,608	-	110	1,728
Corporate bonds Number of issuances (total)	108	117	38	46	160
Corporate bonds Number of issuances (new)	-	3	-	1	4
Average revenue from examination and listing fees
Shares and bonds	0.021%	0.021%	0.020%	0.014%	0.023%
Government bonds	0.004%	0.004%	0.004%	0.004%	0.004%

Appendix – Non-Transactional Metrics (Cont'd)

	Nine months Ended September 30,		Quarter Ended September 30,		Year Ended December 31,
	2020	2019	2020	2019	2019
Revenue from examination and listing fees (in NIS thousands)
Examination fees	4,851	4,085	1,690	1,155	5,416
Listing of shares & bonds	15,127	13,648	5,870	3,864	20,958
Listing of government bonds	4,303	2,385	1,984	883	3,045
Listing of T-bills	504	670	189	251	922
Annual levies and handling fees from member	53	340	-	152	1,208
Other	122	402	95	171	746
Effect of IFRS on Listing Fees	)3,236(	)1,958(	)2,459(	62	(5,684)
Total Revenue from examination and listing fees	21,723	19,572	7,370	6,537	26,611
Total revenue from Listing fees and levies	44,598	40,469	14,855	13,508	54,677

	Nine months Ended September 30,		Quarter Ended September 30,		Year Ended December 31,
	2020	2019	2020	2019	2019
DISTRIBUTION OF DATA AND CONNECTIVITY SERVICES:
Average number of data terminals
Domestic business clients	7,588	7,253	7,504	6,804	7,189
Domestic private clients	8,720	7,177	9,097	6,868	6,489
Overseas	4,466	4,853	4,506	4,824	4,886
Quote generator	270	242	260	234	245
Revenue from data terminals and data (in NIS thousands)
Domestic business clients	12,360	11,749	4,075	3,674	15,528
Domestic private clients	2,747	2,333	955	729	2,726
Overseas	4,150	4,695	1,375	1,528	6,270
Quote generator	1,214	1,077	400	344	1,430
Usage based	6,252	4,125	2,132	1,460	5,793
Indices and data	2,264	2,162	625	550	3,019
connectivity services	6,551	5,589	2,177	2,136	7,654
Total revenue from Distribution of data and connectivity services	35,536	31,731	11,738	10,422	42,419

Presented below are details regarding the velocity of trading in Israel in the reported period:

Turnover Velocity

	Nine month Ended September 30,		% change	Quarter Ended September 30,		% change	Year Ended December 31,
	2020	2019		2020	2019		2019
Furnover Speed
Shares (1)	55.6%	34 8%	60%	50.0%	37.0%	35%	35.2%
Corporate bonds (1)2)	69.1%	50.1%	38%	58.0%	49.1%	18%	54.9%
Government bonds Unlinked 131	135.9%	134 5%	1%	94.2%	140.3%	(33%)	128.4%
Government bonds Linked (4)	97 4%	81 9%	19%	85.7%	81.4%	5%	79.8%
Treasury bills	1129%	87.7%	29%	89.0%	54 4%	64%	61.3%

(1) Turnover velocity includes the ETFs / ETFs traded.

(2) Turnover velocity does not include the corporate bonds traded on TACT-institutional.

(3) Including fixed-rate NIS bonds ("Sahar") and short-term government bonds.

(4) Including index-linked bonds, and variable-rate NIS bonds ("Gilon").