Two trading methods exist on the Tel Aviv Stock Exchange, TASE: the semi-continuous trading or "Mishtanim" and Computerized Call Market (CCM) or "Kerem."

For the "Mishtanim" method, the shares of the 100 companies with the highest daily turnover, determined on a quarterly basis, change hands. Trading is done in "rounds," and may be at different prices. The 100 securities with the highest daily turnover are divided into three groups, with each group allocated to a specific trade arena. Trading in each arena is sequential: the auctioneer announces the name of each security in turn, and exchange members carry out their trading in this security, until all shares in the arena have been traded. This concludes the first "round." The process is repeated until 3:30 PM. On a typical day, there are six rounds. Following the trading rounds, there is a brief crossing round, during which every security is traded at its closing price. This final round usually lasts for 15 minutes and does not result in any new prices being set.

The "Kerem" method is used to trade all securities except those traded by the Mishtanim; it is characterized by a price fixing system. All transactions are carried out at the same price, which is set daily. The CCM is the only system of its kind in the world. It was developed to mirror the old open outcry system where an auctioneer accepted bids made on the trading floor, and price fluctuations were in proportion to the supply and demand of any given security. Under the automated CCM system, TASE members enter orders indicating the number of shares and price limit. This price limit must be within 10% of the previous day's closing price, expressed in increments of 0.25% of that price.

However, unlimited price fluctuations are allowed on the first day of trading for a new security. In cases where there are only buyers or only sellers of a particular security on a given day, unlimited price fluctuations will be allowed on the following trading day until a deal is struck. The CCM system then calculates the current day's price, using a complicated algorithm to minimize price fluctuations due to variation in supply and demand.

All securities settlements in Israel are processed through the TASE Clearing House, which operates a paperless system. There are four "centralizing banks" that act as depository banks on behalf of the TASE Clearing House. All shares are deposited with one of these four banks and are registered in their respective nominee names. The result of this arrangement is an immobilized securities market with a high degree of efficiency.

The settlement cycle in Israel is T+0, meaning trade date equals settlement date. Because of the timeframe, confirming, instructing, and settling trades in Israel for non-Israeli investors in different time zones is performed with some special concessions. First, if a purchase and the attendant foreign exchange are effected directly with the subcustodian, the trade execution notice allows sufficient time to cover the NIS purchase with the local currency of the investor on T+1. This one-day delay is granted by subcustodian banks in the market in recognition of the time zone differences. Conversely, the investor's local currency will be forwarded only on T+1. Second, if the subcustodian is not the broker, an off-floor transaction between the broker and the subcustodian will take place. An off-floor transaction is simply matching instructions input by the receiver and the deliverer of the securities to the TASE Clearing House, which ensures that cash and securities move within a closed circuit. This will generally take place on T+2.

It should be noted that trades, once executed, technically cannot fail. The investor must have sufficient cash cover or an adequate credit line. On a sale, the shares must be identified as being in the seller's account. As a result, the "market settlement" will take place on trade date. If a transaction between a broker and a subcustodian does not take place on the scheduled date, it is not considered a fail by the Israelis, but merely a delay.

Under the General Permit of the Currency Control Law of 1978, foreign investors enjoy the right of repatriation of funds from a host of investment vehicles, provided that said funds were transferred from abroad through a non-resident account (Patach) with an Israeli commercial bank. The General Permit provides repatriation rights for foreign investors who invest in Israeli securities (principal, capital gains, dividends), mutual funds, interest bearing New Israeli Shekel (NIS) accounts, derivatives, corporate bonds, government and corporate bonds (principal, capital gains, interest). The right of repatriation is NOT granted to a non-resident who has invested in linked NIS deposits, savings accounts and provident funds. Authorized currency dealers ensure compliance with foreign currency regulations and keep records of funds transferred from abroad. Buying and selling NIS through subcustodian banks in Israel facilitates repatriation as it avoids the need for obtaining documentation from other banks to prove that the funds originated from abroad.