Nasdaq and Tel Aviv Stock Exchange reach pact

By Lilla Zuill

NEW YORK (Reuters) - A pact reached between the Nasdaq Stock Market (NDAQ.O: Quote, Profile, Research, Stock Buzz) and the Tel Aviv Stock Exchange on Monday could pave the way for mutual collaboration on financial instruments and for a larger number of listings for each exchange, the chief of the Israeli bourse said.

Ester Levanon told Reuters the agreement is a two-way street that is likely to pave the way for collaboration on such things as financial instruments set up by both exchanges.

"We are looking at this quite seriously," Levanon said, but declined to be more specific. "We expect an announcement quite soon."

The Tel Aviv Stock Exchange's blue chip TA-25 index could soon be traded in the United States, Levanon added.

Currently it is traded only in Tel Aviv, but there are plans to change that in the near future, she said.

In addition, Levanon said, the Tel Aviv market will work with Nasdaq to boost the number of dual listings between the two exchanges.

Currently, of the 70 Israeli companies that have Nasdaq listings, about 50 also trade their shares in the Tel Aviv market. Levanon would like to close that gap.

Under the agreement, the Tel Aviv market will also encourage more of its listed companies to consider a nonpublic