Tel Aviv Stock Exchange Ltd. — Earnings Release 2020

Mar 16, 2021

March 16, 2021 386017.docx

THE TEL-AVIV STOCK EXCHANGE LTD REPORTED FOURTH QUARTER AND YEAR 2020 RESULTS

March 16, 2021 (Tel Aviv) -Tel Aviv Stock Exchange Ltd (TASE:TASE) today announced its financial results for the year ended December 31, 2020. 1

TASE Announces a Dividend Distribution of NIS 18.45 Million (NIS 0.1823 per share) to Its Shareholders.

1. General

1.1 Highlights of TASE's Results for 2020 and Fourth Quarter of 2020

Fourth Quarter Results

• TASE revenues amounted to NIS 77.5 million in the fourth quarter of 2020, an increase of 17% compared to the corresponding quarter last year, due mainly to revenue from trading and clearing services.
• Adjusted EBITDA increase in the fourth quarter of 2020 to NIS 25.9 million compared to NIS 15.1 million in the corresponding quarter last year, an increase of 72%.
• Adjusted net profit amounted to NIS 11.5 million in the fourth quarter of 2020, compared to NIS 3.2 million adjusted net profit in the corresponding quarter last year, an increase of 255%.

2020 Results:

• TASE revenues amounted to NIS 304.3 million in the year 2020, an increase of 17% compared to the previous year.
• Adjusted EBITDA increased in 2020 to NIS 95.1 million compared to NIS 62.9 million in the previous year, an increase of 51%.
• Adjusted net profit amounted to NIS 38.2 million in 2020, compared to NIS 21.4 million adjusted net profit in the previous year, an increase of 78%.
• As of December 31, 2020, TASE Group has cash balances of NIS 142 million and Israeli government bonds of NIS 205 million. The TASE Group surplus liquidity amounts to NIS 142 million over regulatory liquidity requirements.
• On March 16, 2021, the Board of Directors of the Company decided on a dividend distribution in an amount of NIS 18.45 Million, an increase of 110% compared to dividend paid in previous year.
• Free cash flow increased in 2020 to NIS 47.6 million compared to NIS 37.4 million in the previous year, an increase of 27%.

¹ The Board of Directors of TASE today approved the Consolidated Financial Statement as of December 31, 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 April.

1.2 Business and Corporate Highlights for the Year 2020 BUSINESS HIGHLIGHTS

• In the fourth quarter of 2020, NIS 6.9 billion was raised on TASE in shares, an increase of 17% over the corresponding quarter the previous year, of which NIS 2.5 billion raised in 15 IPO's (30 IPO's total in 2020).
• The leading indices TA-35 and the TA-90 rose by 15% and 24%, respectively, in the fourth quarter of 2020. The daily average trading volume of shares amounted to approximately NIS 1.9 billion, an increase of 24% compared to the fourth quarter of the previous year.
• The leading indices Tel Bond 20 and the Tel Bond 40 rose by 3.7% and 2.6%, respectively, in the fourth quarter of 2020. The daily average trading volume of corporate bonds in the fourth quarter of 2020 amounted to approximately NIS 0.9 billion, a 6% decrease compared with the volumes in the corresponding quarter of the previous year. The daily average trading volume of government bonds in the fourth quarter of 2020 amounted to approximately NIS 2.6 billion, a 10% increase compared with the volumes in the fourth quarter of 2019: NIS 1.7 billion for NIS government bonds and NIS 0.9 billion for CPI-linked government bonds.
• The daily average trading volume of derivatives amounted to 160 thousand units a day, compared with 142 thousand units in the corresponding quarter of 2019, an increase of 12%.
• The daily average trading volume of mutual funds amounted to NIS 882 million compared with NIS 907 million in the corresponding quarter of 2019, a decrease of 3%.

CORPORATE HIGHLIGHTS

• Listing of limited R&D partnerships Commencing in 2020, the Company allows public R&D partnerships that invest in several projects in the field, similarly to venture capital funds, to list on TASE, subject to compliance with certain criteria.
• 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.
• TASE UP 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.
• 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.
• Operation of the 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 in September 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.
• 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.

2. Presented below is information relating to the results for the fourth quarter of 2020 and for the year ended December 31, 2020 NIS, in thousands)

Three Months Ended December 31, 2020 Compared with Three Months Ended December 31, 2019

Statement of Profit or Loss

	Quarter ended		Difference
	31.12.2020	31.12.2019	Amount	%
Revenue from services	77,482	66,416	11,066	17%
Expenses	63,897	62,867	1,030	2%
Profit before financing income, net	13,585	3,549	10,036	283%
Financing income (expenses)	1,229	(402)	1,631
Taxes on income	3,539	317	3,222	1016%
Net profit	11,275	2,830	8,445	298%
% of total revenue from services for the quarter	14.6%	4.3%

• Revenue in the fourth quarter of 2020 amounted to NIS 77.5 million, compared to revenue of NIS 66.4 million in the corresponding quarter of the previous year, a 17% increase. The increase is due mainly to revenue from trading and clearing services (see details below).
• The costs in the fourth quarter of 2020 after excluding the effect of share-based payment expenses totaled NIS 63.7 million, compared to the expenses in the corresponding quarter of the previous year that totaled NIS 62.4 million, an increase of approx. 2%. The increase in the costs is due mainly to growth in marketing expenses (approx. 1.6% of total costs) as a result of the increase in expenses and the timing of advertising campaign launches in the quarters.
• Net financing income in the fourth quarter of 2020 amounted to approximately NIS 1.2 million, compared to financing expenses of approximately NIS 0.4 million in the corresponding quarter last year. The transition to financing income results from a positive return of 0.8% on the Company's investments in Israeli government bonds managed in marketable securities' portfolios, compared to a negative return of 0.1% in the corresponding quarter of the previous year.
• The net profit in the fourth quarter of 2020 totaled NIS 11.3 million, compared to NIS 2.8 million in the corresponding quarter of the previous year, a 298% increase. The increase in the profit is due to the higher revenue from services, primarily from commissions on trading and clearing services, which was partly offset by an increase in expenses, primarily tax expenses.

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

	Quarter ended
Revenue from services	31.12.2020	% of the Company's total revenues	31.12.2019	% of the Company's total revenues	% change
Trading and clearing commissions	33,487	43% The increase is due to the increased trading volumes in shares, derivatives and government bonds, which accounted for 6%, 2% and 1%, respectively, of the increase in total revenue from trading and clearing services, to the greater number of trading days this quarter as compared to the corresponding quarter last year, resulting in a 12% increase in total revenue from trading and clearing services, as well as to the higher effective commission rate this quarter as a result of the lower volume of transactions in shares and mutual funds at the maximum commission rate and to the change in the pricing model of off-exchange transactions without consideration that accounted for 7% of the increase in total revenue from trading and clearing services.	26,339	40%	27%
Listing fees and levies	15,289	20% The increase is due to the increase in revenue from examination fees as a result of multiple prospectuses and private placements, which contributed 5% to the increase in revenue from listing fees and levies, an increase in revenue from annual fees, which contributed 2% to the increase in revenue from listing fees and levies, and another 1% was contributed by the increase in the recognition of revenue from listing fees.	14,209	22%	8%
Clearing House services	15,006 Clearing House services.	19% The increase is due to the increase in revenue from existing Clearing House services, which contributed 3% to the increase in total revenue from Clearing House services , and from new Clearing House services, which contributed 3% to the increase in total revenue from	14,184	21%	6%
Data distribution and connectivity services	12,872 17% 10,688 16% 20% The increase is due to the higher revenue from data distribution to private customers stemming from the rise in the number of customers, which contributed 8% to the increase in total revenue from data distribution and connectivity services. Additionally, in 2020 TASE started charging business customers for the use of derived data, this accounting for 9% of the increase in total revenue from data distribution and connectivity services. Furthermore, the launch of the Colocation and BSO activities in 2019 contributed 2% to the increase in revenue from data distribution and connectivity services.
Other revenue	828	1% The decrease is due mainly to the shutting down of the Conference Center activities in March 2020 as a result of the coronavirus outbreak.	996	1%	(17%)
Total revenue from services	77,482	100%	66,416	100%

Adjusted net profit and adjusted EBITDA data²

	Quarter ended		Difference
	31.12.2020	31.12.2019	Amount	%
Adjusted EBITDA for the quarter:
Profit before financing income, net	13,585	3,549	10,036
Adjustments:
Share-based payment expenses	246	418	(172)
Depreciation and capital losses	12,113	11,136	977
Adjusted EBITDA for the quarter:	25,944	15,103	10,841	72%
% of total revenue from services for the quarter	33.5%	22.7%
Adjusted profit for the quarter:
Profit for the quarter	11,275	2,830	8,445
Adjustments:
Share-based payment expenses	246	418	(172)
Adjusted profit for the quarter:	11,521	3,248	8,273	255%
% of total revenue from services for the quarter	14.9%	4.9%

• The adjusted EBITDA in the fourth quarter of 2020 totaled NIS 25.9 million, compared to NIS 15.1 million in the corresponding quarter of the previous year, an increase of 72% between the quarters. The increase is due to the higher revenue from services, primarily revenue from trading and clearing commissions.
• The adjusted profit in the fourth quarter of 2020 totaled NIS 11.5 million, compared to an amount of NIS 3.2 million in the corresponding quarter of the previous year. The increase in profit is due to the higher revenue from services, primarily revenue from trading and clearing commissions, which was partly offset by the rise in expenses, primarily tax expenses.

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 constitutes 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.

Year ended December 31, 2020 Compared with Year ended December 31, 2019

Statement of Profit or Loss

		Year ended
	31.12.2020	31.12.2019	Difference	% Change
Revenue from services	304,266	260,001	44,265	17%
Costs	255,494	245,841	9,653	4%
Profit before financing income, net	48,772	14,160	34,612	244%
Financing income (expenses), net	(573)	8,969	(9,542)
Taxes on income	11,295	5,571	5,724	103%
Profit for the year	36,904	17,558	19,346	110%
% of total revenue from services for the year	12.1%	6.8%

• The revenue in 2020 amounted to NIS 304.3 million, compared to revenue of NIS 260.0 million in 2019, a 17% increase. The increase is due mainly to revenue from trading and clearing services (see details below).
• The expenses in 2020 after excluding the effect of share-based payment expenses totaled NIS 254.2 million, compared to the expenses in 2019 that totaled NIS 242.0 million, an increase of 5%. The increase in the costs was due mainly to growth in employee benefit expenses (2.6% of total costs) as a result of salary updates and variable compensation that is affected by the increase in profit in 2020, a rise in marketing expenses (1.3% of total costs) and an increase in computer and communications expenses (1.2% of total costs), stemming mainly from the operation costs of new systems.
• Financing expenses in 2020 amounted to NIS 0.6 million, compared to net financing income of NIS 9 million in 2019. The transition to financing expenses in 2020 is due to current financing costs and commissions, which were partly offset by positive returns of 0.15% on the Company's investments in Israeli government bonds that are managed in marketable securities' portfolios, compared to a positive 4.8% return on the investments in 2019.
• The net profit in 2020 totaled NIS 36.9 million, compared to NIS 17.6 million in 2019, a 110% increase. The increase in the profit is mainly due to the higher revenue from services, primarily revenue from trading and clearing, and was partly offset by an increase in costs, primarily employee benefit expenses, marketing expenses and computer and communications expenses, as well as by the transition to financing expenses this year and the higher tax expenses.

The revenue in Year ended December 31, 2020 below is the composition of the period's revenue, compared to last year:

	Year ended
Revenue from services	31.12.2020	% of the Company's total revenues	31.12.2019	% of the Company's total revenues	% change
	136,451	45%	107,000	41%	28%
Trading and clearing commissions		revenue from trading and clearing services.	The increase primarily reflects the higher trading volumes on TASE following the coronavirus outbreak. The increase in share trading volumes, in the volume of creations and redemptions in mutual funds, in the trading volumes of corporate bonds, derivatives, government bonds and T-bills contributed 13%, 4%, 3%, 3%, 2% and 1%, respectively, to the increase in total revenue from trading and clearing services. Additionally, the greater number of trading days in 2020 as compared to 2019 accounted for 2% of the increase in total
	59,887	19%	54,678	21%	10%
Listing fees and levies			The rise is due to the increase in the recognition of revenue from listing fees, which contributed 3% to the increase in revenue from listing fees and levies, to the increase in revenue from examination fees as a result of multiple prospectuses and private placements, which contributed 3% to the increase in revenue from listing fees and levies, to the charging of new annual fees introduced in 2019 and 2020, which contributed 2% to the increase in revenue from listing fees and levies, and to the increase in revenue from existing fees, which accounted for 2% of the rise in revenue from listing fees and levies.
	57,453	19%	52,331	20%	10%
Clearing House services			The increase is due to an increase in the volume of Clearing House services to clearing members, stemming primarily from the higher volumes of activity, which contributed 6% to the increase in total revenue from Clearing House services, and to new Clearing House services, which contributed 3%.
	48,408	16%	42,419	16%	14%
Data distribution and connectivity services			The increase is due to the higher revenue from data distribution to private customers stemming from the rise in the number of customers, which contributed 6% to the increase in revenue from data distribution and connectivity services. Additionally, in 2020 TASE started charging business customers for the use of derived data, this accounting for 4% of the increase in total revenue from data distribution and connectivity services. Furthermore, the launch of the Colocation and BSO activities in 2019 contributed 3% to the increase in revenue from data distribution and connectivity services.
	2,067	1%	3,573	2%	(42%)
Other revenue			Most of the decrease derives from the shutting down of the Conference Center activities in March 2020 as a result of the coronavirus outbreak.
Total revenue from services	304,266	100%	260,001	100%

Adjusted net profit and adjusted EBITDA data³

	Year ended
	31.12.2020	31.12.2019	Difference	% Change
Adjusted EBITDA for the year:
Profit before financing income, net	48,772	14,160	34,612
Adjustments:
Share-based payment expenses	1,280	3,858	(2,578)
Depreciation and capital losses	45,097	44,929	168
Adjusted EBITDA for the year:	95,149	62,947	32,202	51%
% of total revenue from services for the year	31.3%	24.2%
Adjusted profit for the year:
Profit for the year	36,904	17,558	19,346
Adjustments:
Share-based payment expenses	1,280	3,858	(2,578)
Adjusted profit for the year:	38,184	21,416	16,768	78%
% of total revenue from services for the year	12.5%	8.2%

• The adjusted EBITDA in 2020 totaled NIS 95.1 million, compared to NIS 62.9 million in 2019, an interannual increase of 51%. The increase is due to the higher revenue from services, primarily revenue from trading and clearing, and was partly offset by the increase in expenses, primarily employee benefit expenses, marketing expenses and computer and communications expenses.
• The adjusted net profit in 2020 totaled NIS 38.2 million, compared to NIS 21.4 million in 2019, a 78% increase. The increase is mainly due to an increase in revenue from services, primarily revenue from trading and clearing, which was partly offset by an increase in employee benefit expenses, marketing expenses and computer and communications expenses, as well as by the transition to financing expenses this year and the higher tax expenses.

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 constitutes 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.

Presented below is information relating to the financial position as of December 31, 2020 (NIS, in thousands):

	As of 31.12.2020	As of 31.12.2019
	NIS, in thousands		Difference	% Change
Cash and cash equivalents and short term financial assets	346,712	308,892	37,820	12%
Other current assets	19,303	20,362	(1,059)	(5%)
Property and equipment and intangible assets	451,196	457,543	(6,347)	(1%)
Other non-current assets	17,460	18,363	(903)	(5%)
Total assets (*)	834,671	805,160	29,511	4%
Current liabilities	75,141	81,876	(6,735)	(8%)
Non-current liabilities	128,690	124,577	4,113	3%
Total liabilities (*)	203,831	206,453	(2,622)	(1%)
Total equity	630,840	598,707	32,133	5%
Ratio of equity to total assets	76%	74%
Surplus equity over regulatory requirements (in NIS millions)	298	282	16	6%
Surplus liquidity over regulatory requirements (in NIS millions)	142	132	10	7%

• (*) The total assets and liabilities as of December 31, 2020 and December 31, 2019, include a balance of assets/liabilities in respect of open derivative positions amounting to NIS 353.2 million and NIS 351.7 million, respectively, which for reasons of convenience in analyzing the financial position has been offset against each other.
• The total assets as of December 31, 2020 amounted to NIS 834.7million, 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 December 31, 2020 amounted to NIS 203.8 million, a 1% decrease compared to December 31, 2019. Most of the decrease is due to the reduction in lease liabilities and in trade payables, which was partly offset by an increased in deferred income from listing fees and levies.
• The equity as of December 31, 2020 amounted to NIS 630.8 million, a 5% increase compared to December 31, 2019. Most of the increase is due to a profit of NIS 36.9 million in 2020 and to proceeds from shareholders in an amount of NIS 3.7 million within the framework of the TASE Ownership Restructuring, and was partly offset by a dividend distribution of NIS 8.8 million.

Presented below is Cash flows for the three ended December 31, 2020 (NIS, in millions):

		Data for the three months ended December 31
	Item	2020	2019	Explanations of the Company
	Adjusted EBITDA	25.9	15.1	The increase in adjusted EBITDA is due to the higher revenue from services, primarily trading and clearing.
Net cash from operating activities	Changes in working capital	(1.9)	11.1	The decrease in working capital is due to the timing of payments and receipts between the quarters, primarily in respect of employee benefits and trade and other payables.
	Financing and tax	(3.7)	(1.0)	The decrease is due mainly to taxes paid in the fourth quarter of 2020, in light of the higher profit.
	Total	20.3	25.2
Net cash from (for) investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(14.5)	(9.5)
	Acquisition (disposal) of financial assets, net	(1.4)	12.2	The decrease is mainly due to the realization of securities in the fourth quarter of 2019, in accordance with the policy for the investment of the Company's financial reserves.
	Total	(15.9)	2.7
Net cash (for) from financing activities	Proceeds from shareholders within the framework of listing the Company's shares and the Ownership Restructuring	-	7.2	Proceeds received in the fourth quarter of 2019 within the framework of the secondary offering and the initial listing of the shares within the framework of implementing the TASE Ownership Restructuring, in an amount of NIS 7.2 million.
	Lease payments	(2.4)	(2.5)
	Total	(2.4)	4.7
equivalents	Total increase in cash and cash	2.0	32.6

	Presented below is Cash flows for the year ended December 31, 2020 (NIS, in millions):
--	----------------------------------------------------------------------------------------	--	--

		Data for the year ended
	Item	31.12.2020	31.12.2019	31.12.2018	Explanations of the Company
Net cash from operating activities	Adjusted EBITDA	95.1	62.9	61.5	The increase in adjusted EBITDA in 2020, compared to 2019 and 2018, is due to the higher revenue from services, primarily trading and clearing.
	Changes in working capital	6.7	12.4	6.1	The change in working capital is due to the timing of payments and receipts between the periods, primarily in respect of employee benefits, and to the increase in deferred income from listing fees and levies.
	Financing and tax	(6.4)	5.8	3.7	The decrease is due mainly to tax payments, net in 2020, compared to tax receipts, net in 2018 and 2019.
	Total	95.4	81.1	71.3
Net cash for investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(37.9)	(33.9)	(52.4)	The volume of investments in 2020 and 2019 stems from the work plan of the Company. The increase in investments in 2018 is due to an investment shortfall in previous years. In addition, in 2018 the Company began implementing the strategic plan that was adopted in 2017 and, during 2018, it began developing two material projects – Colocation and a Central securities lending pool, which began to operate in June 2019 and November 2020, respectively.
	Acquisition of financial assets, net	(4.2)	(17.0)	(2.6)	Deposits in managed portfolios.
	Total	(42.1)	(50.9)	(55.0)
Net Cash (for) from financing activities	Proceeds from shareholders within the framework of listing the Company's shares and the Ownership Restructuring	3.7	29.4	9.9	Proceeds from the sale of shares within the framework of implementing the TASE Ownership Restructuring. In 2019, additional proceeds within the framework of the secondary offering and the initial listing of the shares, in an amount of NIS 16.2 million.
	Dividend paid	(8.8)	-	-	Commencing in 2019, the Company adopted a policy pursuant to which a dividend is paid in the subsequent year.
	Lease payments	(9.9)	(9.7)	-	Initial application of IFRS 16 as from January 1, 2019.
	Total	(15.0)	19.7	9.9
cash equivalents	Total increase in cash and	38.3	49.9	26.2

3. Presentation and Reclassification of Financial Statements

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 a total of 248 trading days, compared to 244 days in 2019 (a 1.6% increase). In the fourth quarter of 2020, there were a total of 66 trading days, compared to 59 trading days in the corresponding quarter last (a 12% increase), the difference being due to the different timing of the Jewish High Holidays in 2020 and in 2019.

4. Events at the reporting date and thereafter

• 4.1 On March 16, 2021, the Board of Directors of the Company decided on a dividend distribution, in accordance with the Company's policy, in an amount of NIS 18.45 million, representing NIS 0.1823 per ordinary share. The record date for entitlement to the dividend is March 25, 2021. The dividend is payable on April 5, 2021.
• 4.2 At the Company's special general meeting held on March 10, 2021, the updated compensation policy of the company for the years 2021-2023 was approved. The 2021-2023 compensation policy is for a period of three years and provides for fixed and variable components of the officers' compensation and the correlation between such components, including parameters, threshold criteria, ranges and ceilings for the compensation components (based on the performance of the Company and the performance of the officers).
• 4.3 On December 15, 2020, Abu Dhabi Securities Exchange (ADX) and the Company signed a memorandum of understanding (MOU), the key purpose of which is the exploration of potential opportunities for regional collaboration in various fields of their operations, including the cross listing of securities, facilitating easy access between the two stock exchanges for both companies and investors, creating new fintech market infrastructure technologies and developing new products. It is hereby clarified that the MOU only addresses the formulation of an outline for contemplating potential collaborations between the parties (including the regulation of related aspects, such as transfer of data, confidentiality etc.) and that, to the date of the report, agreements have not yet been reached with regard to such collaborations, realizing the purpose of the MOU.
• 4.4 On November 23, 2020, company announced that it is conducting negotiations with a group of investors for the promotion of a joint venture for the development and supply of a trading system in securities, based primarily on knowhow and technology in possession of the Company, to a foreign corporation that is designated to engage in the management of a stock exchange in Ukraine. One of the key conditions for the venture is the participation of the Government of Ukraine.
• 4.5 The Group has entered into a lease arrangement with respect to one of the floors in the building used by the Group, for a 5-year period that commenced in March 2016, which includes an extension option for a further 3 years. In November 2020, the renter informed the Company that it will not be exercising the option and requested the termination of the lease on January 31, 2021. The Company has accepted the renter's request to terminate the lease as above.
• 4.6 In its report on the strategic five-year plan, the Company states that it is considering the need for various adjustments to the strategic plan. Within this framework, in view of the capital surplus and the increased cash balances, the Company is planning to consider various alternatives for optimal use of its cash balances, including adjustment of the Company's dividend policy, distribution of dividends and/or adoption of a buyback plan or the performance of strategic acquisitions and/or investments in its fields of activity and/or in areas that offer added value to its activities.
• 4.7 Contemplated scheme for the transfer of surplus proceeds from the sale of Company shares by other shareholders:

Currently, up to 19,148,109 shares of the Company that had been allotted to TASE members as part of the TASE ownership restructuring are still held by the TASE members. If these shareholders sell their shares, the Company will receive the consideration exceeding NIS 5.08 per share. The Company's is contemplating a two-fold scheme aimed at ensuring the timely receipt of the excess consideration through a combination of buyback of existing shares held by TASE members and allotment of new shares. To the date of the report, the matter is still under review and discussion with the Israeli Securities Authority.

• 4.8 Bill for the establishment of a dedicated stock exchange In 2020, a new memorandum of law was published, which discusses amendments to the Securities Law and the Companies Law for the purpose of laying the foundations for the establishment of a dedicated stock exchange, the distinguishing factors of which may be the limitation of the trading therein to accredited investors only (similarly to the Company's TACT-Institutional system, including under the TASE UP brand), whether due to its innovative and advanced operating features or the restriction of its trading volumes, the number or value of its listed entities or the types of securities that may be listed therein. On March 3, 2021, the Ministerial Legislation Committee passed a bill concerning a dedicated stock exchange.
• 4.9 On February 16, 2021, the Securities Authority issued a "non-enforcement" letter to a private company registered in Israel that is looking to offer a technological solution for capital raising by small and medium businesses, creating a primary and a secondary market.

4.10 Labor Dispute at TASE Declared by the New General Federation of Labor in Israel

On September 17, 2018, a labor dispute was declared at TASE by the New General Federation of Labor in Israel (the "Histadrut"). The nature of the dispute, according to the notice that was sent from the Histadrut, mainly concerns the implications of the transaction for the sale of the Company's shares on the employees' rights, and the signing of a new collective agreement to secure the economic rights and employment security of the employees.

On October 8, 2018, TASE filed a motion by a party in a collective dispute to the Tel Aviv Labor Tribunal against the Histadrut and TASE's Employees Committee, to cancel the collective dispute that was declared by the Histadrut. On December 1, 2019, the Regional Labor Tribunal rejected TASE's ex parte motion, without adjudication of cause of action.

On December 15, 2019, TASE appealed the ruling of the Regional Labor Tribunal from December 1, 2019 to the National Labor Tribunal. On March 3, 2020, a hearing of the appeal was held in the National Labor Tribunal, and the parties accepted the Tribunal's proposal of mediation with an external mediator regarding their disputes that are not related to the dispute that is the subject matter of the appeal. On July 16, 2020, the Histadrut announced the cancellation of the labor dispute. On the same date, the National Labor Tribunal ruled, at the consent of the parties, that, in view of the cancellation of the labor dispute and considering the problematic points found in the ruling of the Regional Labor Tribunal, the ruling is overturned. By virtue of this ruling, the appeal was withdrawn.

On May 20, 2019, a labor dispute was declared at TASE by the Histadrut, concerning the lack of agreement regarding the rate and date of the distribution of the annual bonus for 2017. In addition to the labor dispute that was declared, various sanctions have been imposed by TASE employees, which even led to a late opening of trading on TASE on May 21, 2019. Furthermore, trading on TASE was suspended on June 7, 2020 as part of the sanctions imposed by the TASE employees committee in the collective labor dispute.

On July 26, 2020, a special collective agreement (hereafter: "the special agreement") was signed between the Company, on the one hand, and the Histadrut and the TASE 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, this labor dispute, too, has come to an end. It should be noted that, considering the provisions that were included in the previous financial statements of the Company, the special agreement did not affect the financial results of the Company as of December 31, 2020.

4.11 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), for default in payment of the listing fees payable by virtue of the TASE Rules in respect of government bonds that had been issued in the period from May 2013 through March 2020 (inclusive) within the framework of the Ministry of Finance's lending pool. To the date of this report, the State submitted a statement of defense, rejecting the claims of the Company. The Court scheduled a hearing for April 11, 2021. To remove any doubts, its is hereby clarified that thus far the Company has not recognized in its financial statements income from the listing fees covered in the claim.

4.12 The Coronavirus Crisis

The outbreak of the coronavirus in China in January 2020 and its spreading into a "global pandemic" resulted in uncertainty and strong fluctuations in the capital markets, which were exacerbated by its effects on global economic activities. Travel restrictions that were imposed by numerous countries, in an effort to stem the spread of the virus, first affected the tourism, hotels and aviation sectors, and the energy, oil and gas companies that suffered from the drop in oil and gas prices. The subsequent broadening of internal restrictions in Israel and prohibition of gatherings adversely affected the leisure and entertainment sector, restaurants and venues, alongside a reported negative impact on banks, insurance companies, exporters, income-producing real estate companies and more.

The growing uncertainty surrounding the implications of the spread of the virus on global economy resulted in a sharp drop of prices in stock exchanges worldwide, including Tel Aviv. The reductions that began in February 2020 persisted and even became more pronounced in March 2020, this on the backdrop of the spread of the virus in Israel and the Government's announcement of broader restrictions. The price reductions were accompanied by strong trading turnovers, whereas capital-raising that was on the rise in the equity and bond markets during the first two months of the year, all but stopped in March 2020. In April 2020, prices soared, partly offsetting the price drops that took place in the capital markets since the beginning of the year. Towards the end of 2020, with the approval of various vaccines for the coronavirus and the initiation of vaccination campaigns in Israel and worldwide, the markets picked up, with a notable increase in the number of company IPO prospectuses submitted to TASE.

In view of the aforesaid, to the date of the report, the significant negative effects of the pandemic on the operating results of the Company cannot be estimated, as in principle it is not directly affected by the prices of the securities, but rather by the trading and clearing turnovers of securities and derivatives (which reached record highs in March 2020).

To the date of this Report, the Company has an operational and technological solution in place that facilitates the operation of TASE and the Clearing Houses 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 to date 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).

In view of the aforesaid and since, to the date of this Periodic Report, 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 the report, such negative effects are not evident, with the exception of the more marginal revenue channels, i.e. other than trading and clearing of securities, custodian services etc., such as revenue from the portfolio of investments in government bonds and revenue from the rental of space and holding of events, which at any rate are immaterial to the Company).

Nevertheless, it is not unreasonable to assume that the persistence and exacerbation of this crisis and a growing 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 in 2021, 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 2021, this could adversely impact the volume of fees from companies in 2022, which are derived from the value of the securities listed as of December 2021. Additionally, persisting uncertainty, in general, and in the capital market, in particular, could defer the 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 in the recovery period cannot be estimated, more so as these depend, among others, on the progression of the recovery, 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 the past year, where the significant increase in morbidity 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 morbidity rates reduced, in the middle of October 2020, a plan was announced for the gradual lifting of restrictions based on predetermined morbidity targets, which was also subject to occasional changes, followed by another comprehensive lockdown at the beginning of 2021. 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 obstacles to assessing the duration of the crisis and/or the rate of recovery therefrom.

5. Information relating to the results for the fourth quarter of 2020 and for the year ended December 31, 2020 NIS, in thousands)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	December 31,
	2020	2019
Assets
Current assets
Cash and cash equivalents	142,154	103,928
Financial assets at fair value through profit or loss	204,558	204,964
Trade receivables	12,854	13,776
Other receivables	6,449	6,373
Current tax assets	-	213
	366,015	329,254
Assets derived from clearing operations in respect to open derivative positions	353,193	351,742
Total current assets	719,208	680,996
Non-current assets
Cash restricted as to use	542	541
Other long-term receivables	2,110	3,761
Property and equipment, net	330,075	345,176
Intangible assets, net	121,121	112,367
Deferred tax assets	14,808	14,061
Total non-current assets	468,656	475,906
Total assets	1,187,864	1,156,902

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	December 31,
	2020	2019
Liabilities and Equity
Current liabilities
Trade payables	12,159	15,376
Short-term liabilities for employee benefits	32,013	33,121
Other payables	3,684	3,301
Current maturities of lease liabilities	4,302	9,728
Current tax liabilities	1,919	970
Deferred income from listing fees and levies	21,064	19,380
	75,141	81,876
Liabilities derived from clearing operations in respect to open derivative positions	353,193	351,742
Total current liabilities	428,334	433,618
Non-current liabilities
Non-current liabilities for employee benefits	40,413	37,565
Lease liabilities	9,089	12,553
Deferred income from listing fees and levies	78,646	73,918
Other liabilities	542	541
Total non-current liabilities	128,690	124,577
Equity
Remeasurement reserve of net liabilities in respect to defined benefit	(17,909)	(16,905)
Capital reserve in respect to share-based payment transactions	32,518	31,238
Other capital reserves	46,802	43,079
Retained earnings	569,429	541,295
Total equity	630,840	598,707
Total liabilities and equity	1,187,864	1,156,902

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(NIS, in thousands)

	Year ended December 31,
	2020	2019	2018
Revenue from services:
Trading and clearing commissions	136,451	107,000	119,355
Listing fees and levies	59,887	54,678	46,525
Clearing House services	57,453	52,331	49,605
Distribution of data and connectivity services	48,408	42,419	34,954
Other revenue	2,067	3,573	5,166
Total revenue from services	304,266	260,001	255,605
Cost of revenue:
Employee benefits expenses	139,355	132,973	129,270
Expenses in respect to share-based payments	1,280	3,858	-
Computer and communications expenses	26,753	23,819	26,024
Property taxes and building maintenance expenses	11,762	12,602	12,994
General and administrative expenses	9,373	9,122	8,829
Marketing expenses	11,098	7,858	5,452
Fee to the Israel Securities Authority	10,776	10,680	10,506
Operating expenses for nominee company	-	-	448
Depreciation and amortization	44,510	43,571	32,672
Reversal of impairment provision	-	-	(85,108)
Other expenses	587	1,358	896
Total costs	255,494	245,841	141,983
Profit before financing income (expenses), net	48,772	14,160	113,622
Financing income	410	9,975	(899)
Financing expenses	983	1,006	161
Total financing income (expenses), net	(573)	8,969	(1,060)
Profit before taxes on income	48,199	23,129	112,562
Taxes on income	11,295	5,571	26,140
Profit for the year	36,904	17,558	86,422
Basic earnings per share (NIS)	0.368	0.176	0.864
Diluted earnings per share (NIS)	0.358	0.174	0.864

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (NIS in thousands)

	Capital reserve in respect to share-based payment transactions	Remeasure ment reserve of net liability in respect to defined benefit	Other capital reserves	Retained earnings	Total
Balance at January 1, 2020	31,238	(16,905)	43,079	541,295	598,707
Profit for the year	-	-	-	36,904	36,904
Other comprehensive loss for the year	-	(1,004)	-	-	(1,004)
Total comprehensive income (loss) for the year	-	(1,004)	-	36,904	35,900
Dividend paid	-	-	-	(8,770)	(8,770)
Share-based payment	1,280	-	-	-	1,280
Receipts from shareholders within the framework of implementing the ownership
restructuring, net	-	-	3,723	-	3,723
Balance at December 31,
2020	32,518	(17,909)	46,802	569,429	630,840

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands)

	Year ended
	December 31,
	2020	2019	2018
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year	36,904	17,558	86,422
Expenses in respect of share-based payments	1,280	3,858	-
Tax expenses recognized in profit or loss	11,295	5,571	26,140
Net financing expenses (income) recognized in profit or loss	573	(8,969)	1,060
Depreciation and amortization	44,510	43,571	32,672
Reversal of impairment provision Loss (gain) from disposal of property and equipment and intangible	-	-	(85,108)
assets	587	1,358	280
	95,149	62,947	61,466
Changes in asset and liability items:
Decrease (increase) in trade receivables and other receivables	2,514	(607)	(1,408)
Decrease (increase) in receivables in respect to open derivative	(1,451)	543,659	844,169
positions Decrease (increase) in trade payables and other payables	(2,673)	1,176	(3,282)
Increase in deferred income from listing fees and levies	6,412	5,726	2,660
Increase (decrease) in payables in respect to open derivative positions	1,451	(543,659)	(844,169)
Increase in liabilities for employee benefits	436	6,083	8,084
	101,838	75,325	67,520
Interest received	5,008	6,110	5,058
Interest paid	(723)	(637)	(154)
Tax receipts (payments) - operating activities	(10,694)	332	(1,171)
	(6,409)	5,805	3,733
Net cash provided by operating activities	95,429	81,130	71,253
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(11,145)	(6,416)	(20,388)
Proceeds from the disposal of property and equipment	-	192	41
Acquisitions of intangible assets	(11,161)	(11,850)	(14,962)
Refund for overpaid development levies	-	-	1,788
Payments in respect to costs capitalized to property and equipment and to intangible assets	(15,583)	(15,838)	(18,892)
Acquisition of financial assets at fair value through profit or loss, net	(4,206)	(17,032)	(2,633)
Net cash used in investing activities	(42,095)	(50,944)	(55,046)
CASH FLOW FROM FINANCING ACTIVITIES:
Lease payments	(9,929)	(9,739)	-
Dividend paid	(8,770)	-	-
Company's share in the first-time listing of the shares	-	15,600	-
Receipts from shareholders within the framework of implementing the ownership restructuring, net	3,723	13,782	9,907
Net cash provided by (used in) financing activities	(14,976)	19,643	9,907
Net increase in cash and cash equivalents	38,358	49,829	26,114
Cash and cash equivalents, beginning of the year	103,928	54,363	28,095
Effect of changes in exchange rates on cash balances held in foreign currency	(132)	(264)	154
Cash and cash equivalents, end of the year	142,154	103,928	54,363

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

	Jan-Mar 2020	Apr-Jun 2020	Jul-Sep 2020	Oct-Dec 2020	2020	Oct-Dec 2019
Item	(Unaudited)			(Audited)	(Unaudited)
Revenue from services:
Trading and clearing commissions	39,680	32,187	31,097	33,487	136,451	26,339
Listing fees and levies	14,977	14,765	14,856	15,289	59,887	14,209
Clearing House services	14,368	14,127	13,952	15,006	57,453	14,184
Distribution of data and connectivity services	11,615	12,183	11,738	12,872	48,408	10,688
Other revenue	567	285	387	828	2,067	996
Total revenue from services	81,207	73,547	72,030	77,482	304,266	66,416
Cost of revenue
Expenses in respect of employee benefits, net	36,391	34,568	34,989	33,407	139,355	34,298
Share-based payment expenses	414	370	250	246	1,280	418
Computer and communication expenses	6,288	6,850	6,736	6,879	26,753	6,148
Property taxes and building maintenance expenses	3,134	2,277	3,076	3,275	11,762	3,428
General and administrative expenses	2,375	2,205	2,504	2,289	9,373	2,791
Marketing expenses	1,430	3,981	2,693	2,994	11,098	1,942
Fee to the Israel Securities Authority	2,699	2,689	2,694	2,694	10,776	2,706
Depreciation and amortization expenses	10,871	10,968	11,126	11,545	44,510	11,057
Other expenses	18	-	1	568	587	79
Total cost of revenue	63,620	63,908	64,069	63,897	255,494	62,867
Profit before financing income (expenses), net	17,587	9,639	7,961	13,585	48,772	3,549
Financing income	(4,243)	3,785	(735)	1,603	410	(49)
Financing expenses	164	280	165	374	983	353
Total financing income (expenses), net	(4,407)	3,505	(900)	1,229	(573)	(402)
Profit before taxes on income	13,180	13,144	7,061	14,814	48,199	3,147
Taxes on income	2,950	3,114	1,692	3,539	11,295	317
Net profit	10,230	10,030	5,369	11,275	36,904	2,830

ABOUT TASE

The Company, including by means of the companies consolidated in its financial statements (collectively, "the Group"), is engaged in the area of 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 for securities. 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 operated a nominee company as defined in the Securities Law (securities traded on TASE are registered in the nominee company's name). The Company has one area of activity that is reported as a business segment in the Company's consolidated financial statements – trading and clearing transactions in securities

CONTACTS
Yehuda van der Walde Orna Goren
EVP, CFO Head of Communication 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

	Year Ended December 31,		Quarter Ended December 31,
	2020	2019	2020	2019
Number of trading days	248	244	66	59
SHARES
Shares (ex. ETN / ETFs)	842	820	842	820
ETN / ETFs on share indices	61	64	61	64
Market value (in NIS billions)	903	884	903	884
Shares (ex. ETN / ETFs)	1,465	1,081	1,363	1,200
ETN / ETFs on share indices	393	219	307	231
Average daily turnover (in NIS millions)	1,858	1,300	1,670	1,431
Average commissions	0.01067%	0.01022%	0.01123%	0.00994%
Revenue (in NIS thousands)	49,150	32,434	12,373	8,389
BONDS
Government bonds -Unlinked	351	276	351	276
Government bonds -Linked	280	257	280	257
Corporate bonds	388	411	388	411
Bonds (ex. ETN / ETFs)	1,019	944	1,019	944
ETN / ETFs on bond indices	31	29	31	29
Market value (in NIS billions)	1,050	973	1,050	973
Government bonds - Unlinked ADV (in NIS millions)	1,959	1,722	1,682	1,541
Government bonds - Linked ADV (in NIS millions)	1,100	897	914	824
Corporate bonds ADV excluding ETNs (in NIS millions)	928	798	822	898
ETN / ETFs on bond indices	148	95	120	103
Average daily turnover (in NIS millions)	4,135	3,512	3,538	3,366
Government bonds Unlinked - Average commissions	0.00188%	0.00192%	0.00190%	0.00193%
Government bonds Linked - Average commissions	0.00294%	0.00291%	0.00294%	0.00291%
Corporate bonds - Average commissions	0.00696%	0.00694%	0.00718%	0.00677%
Government bonds (in NIS thousands)	9,116	8,052	2,108	1,752
Government bonds (in NIS thousands)	8,022	6,367	1,776	1,414
Corporate bonds (in NIS thousands)	18,573	15,116	4,462	4,001
Other (MTS) (in NIS thousands)	135	187	31	29
Revenue (in NIS thousands)	35,846	29,722	8,377	7,196

	Year Ended December 31,		Quarter Ended December 31,
	2020	2019	2020	2019
TREASURY BILLS
Market value (in NIS billions)	87	120	87	120
Treasury bills ADV (in NIS millions)	579	413	278	421
Average commissions	0.00203%	0.00256%	0.00262%	0.00248%
Revenue (in NIS thousands)	2,920	2,581	481	617
MUTUAL FUNDS
Market value (in NIS billions)	239	259	239	259
Average daily value of creation/redemptions (in NIS millions)	1055	883	882	907
Average commissions	0.01016%	0.01100%	0.01163%	0.01093%
Revenue (in NIS thousands)	26,594	23,716	6,768	5,849
DERIVATIVES
Options on indices	112.1	96.6	106.6	84.7
Derivatives on FX	55.0	45.4	50.5	54.3
Derivatives on single shares	3.0	3.1	2.8	3.4
Total derivative contracts (in '000 units)	170.1	145.1	159.9	142.4
Options on indices - Average commissions	0.580	0.580	0.580	0.580
Derivatives on FX -Average commissions	0.360	0.360	0.360	0.360
Derivatives on single shares- Average commissions	1.000	1.000	1.000	1.000
Revenue (in NIS thousands)	21,941	18,547	5,488	4,288
Total revenue from Trading and clearing commissions	136,451	107,000	33,487	26,339

	Year Ended December 31,		Quarter Ended December 31,
	2020	2019	2020	2019
LISTING FEES AND LEVIES
Weighted avg. number of companies / funds
Companies	527	541	524	531
Mutual funds and ETNs / ETFs	2,142	2,132	2,135	2,119
Avg. revenue from levies (in NIS thousands)
Companies	20.9	18.9	5.2	4.7
Mutual funds and ETNs / ETFs	7.6	7.2	1.8	1.8
Revenue from annual levies from: (in NIS thousands)
Companies	11,039	10,198	2,740	2,520
Mutual funds and ETNs / ETFs	16,225	15,339	3,923	3,827
Nominee Company and others	3,067	2,530	794	823
Issuance volume and swap transactions (in NIS millions)
Companies – shares and bonds	91,471	91,415	25,046	34,151
Government bonds	164,779	86,115	45,026	18,192
Treasury-bills	100,924	131,684	28,990	35,948
Number of issuances
Number of public offerings of shares on TASE	115	60	42	17
Number of new issuers of shares	27	7	15	1
Number of new (dual-listed) companies	3	3	1	-
Number of Offerings and Volumes Raised
Amount raised in share IPOs of new issuers (in NIS millions)	4,616	3,206	2,480	500
Amount raised in bond offerings by new issuers (in NIS millions)	100	1,728	100	120
Number of corporate bond offerings to the public	145	160	37	43
Number of corporate bond offerings to the public by new companies	1	4	1	1
Average revenue from Examination and Listing Fees
Companies – shares, bonds and ETFs	0.0236%	0.0229%	0.0257%	0.0214%
Government bonds	0.0036%	0.0035%	0.0035%	0.0036%
Revenue from Examination and Listing Fees (in NIS thousands)
Examination fees	6,843	5,416	1,992	1,331
Listing fees - shares & bonds	21,570	20,958	6,443	7,310
Listing fees - government bonds	5,881	3,045	1,578	660
Listing of T-bills	707	922	203	252
Levies and examination fees from members	133	1,208	80	868
Other	218	746	94	344
Effect of IFRS on Listing Fees	(5,796)	(5,684)	(2,558)	(3,726)
Total revenue from Listing Fees and Levies	59,887	54,678	15,289	14,209

	Year Ended December 31,		Quarter Ended December 31,
	2020	2019	2020	2019
CLEARING HOUSE SERVICES
Market value of assets (in NIS billions)	2,695	2,639	2,695	2,639
Avg. commissions from Custodian Fees	0.00109%	0.00105%	0.00108%	0.00106%
Revenue from: (in NIS thousands)
Custodian Fees	26,676	26,534	6,983	6,970
Clearing House services for members / company events	25,805	21,160	6,733	6,039
Other	4,972	4,637	1,290	1,175
Total revenue from Clearing House services	57,453	52,331	15,006	14,184

	Year Ended December 31,		Quarter Ended December 31,
	2020	2019	2020	2019
DISTRIBUTION OF DATA AND CONNECTIVITY SERVICES:
Average number of data terminals
In Israel – for business customers	7,559	7,274	7,471	7,335
In Israel – for private customers	8,816	6,489	9,106	4,426
Overseas	4,560	4,886	4,843	4,987
Quote generator	285	245	329	254
Revenue from data terminals and data (in NIS thousands)
Data terminals in Israel charged monthly – business customers	16,416	15,527	4,056	3,778
Data terminals in Israel charged monthly – private customers	3,703	2,726	956	393
Data terminals overseas charged monthly	5,559	6,270	1,409	1,574
Quote generator	1,697	1,430	483	353
Data terminals according to extent of use and information files	9,066	5,793	2,814	1,668
Indices and data	3,189	3,019	927	857
Connectivity services	8,778	7,654	2,227	2,065
Total revenue from Data distribution and Connectivity services	48,408	42,419	12,872	10,688

Presented below are details regarding the velocity of trading(5) in Israel in the reported period:

	Year Ended December 31,		% change	Quarter Ended December 31,		% change
	2020	2019		2020	2019
Velocity of trading
Shares(2)	52.9%	35.2%	50%	44.6%	36.4%	23%
Corporate bonds(2) (3)	66.5%	54.9%	21%	59.4%	58.8%	1%
Government bonds – shekel 4)	124.1%	128.4%	(3%)	94.9%	110.0%	(14%)
Government bonds – other(5)	89.9%	79.8%	13%	69.9%	73.1%	(4%)
Treasury bills	98.4%	61.3%	61%	53.6%	56.2%	(5%)

(1) The velocity of trading does not include off-exchange transactions.

(2) The velocity of trading includes the ETFs / ETFs traded.

(3) The velocity of trading does not include data of TACT institutional-traded corporate bonds.

(4) Including "Shahar" fixed-interest shekel bonds and short-term government bonds.

(5) Includes CPI-linked bonds and "Gilon" variable-interest shekel bonds.