Early last month, the Tel Aviv Stock Exchange and the Toronto Stock Exchange announced the signing of a Memorandum of Understanding (MoU) to formalize cooperation between the markets.

Under the MoU, the exchanges will work to broaden relations between them by developing channels of communication; advancing opportunities for cross listing; supporting the respective regulatory authorities to develop a mutual recognition agreement; exploring the development and listing of financial instruments tracking the other’s market indices; initiating joint conferences, and more.

Established in September 1935, the Tel-Aviv Stock Exchange is Israel’s sole stock exchange, offering a range of products to investors including equity, corporate bonds, treasury bills and notes, index products and derivatives.

As of January 2010, the exchange’s market capitalization in equities was over $216 billion. In recent years, the exchange has enhanced its international presence, signing MoUs with the London Stock Exchange (England), NASDAQ (US), the Shanghai Stock Exchange (China) and NYSE-Euronext (US & Europe).