US stock market Nasdaq has signed a 'memorandum of understanding' with the Tel Aviv Stock Exchange to build relations between the pair, just two months after Israel was deemed by index provider FTSE to be on a par with top European, Middle East and African stock exchanges for trading efficiency.

The agreement is intended to formalise the relationship between the two markets, develop channels of communication and increase trading of company shares admitted on both bourses. The Tel Aviv exchange signed a similar memorandum with the London Stock Exchange in February.