Australian hedge fund legend Shane Finemore says quitting the board of the Australian Securities Exchange was a painful moment in his career. But that hasn't diminished his enthusiasm for exchanges, as his fund, Manikay Partners, has bought a near 20 per cent stake in the Tel Aviv stock exchange.

Mr Finemore left the board of the ASX after Manikay fell foul of the US Securities and Exchange Commission's Regulation M – which protects market offerings by restricting short-selling activity – and was forced to shell out around $US2 million to $US3 million in fines for the 2009 offence.