DOCSLIB.ORG

Israel Securities Authority

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Israel Securities Authority ר ש ו ת נ י י ר ו ת ע ר ך ISRAEL SECURITIES AUTHORITY Submitted to the Minister of Finance and the Knesset's Finance Committee Jerusalem, 2014 רשותניירותערך ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ISRAEL SECURITIES AUTHORITY ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ CHAIRMAN‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎29th of Adar II 4775‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎March 31 2014 ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎To:‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎To: ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎Mr. Yair Lapid, MK‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎Mr. Nissan Slomiansky, MK‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎Minister of Finance‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎Chairman of the Knesset Finance Committee ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎Ministry of Finance‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ The Knesset‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎Dear Minister of Finance,‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎Dear Member of the Knesset and Chairman, ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ Re:‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ Report on the Activities of the Israel Securities Authority ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ In‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ accordance with Section 14 of the Securities Law of 1968 (hereinafter – the Law), I respectfully submit to you this report on the activities of the Israel Securities Authority (ISA) for 2013. ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎The ISA currently regulates most of the capital market activity in Israel.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ As of the end of 2013, the ISA supervised the Tel Aviv Stock Exchange, as well as 658 corporations, 1,257 mutual funds, 531 exchange traded notes, 158 licensed portfolio management companies, and 4,768 individual license holders who serve as investment advisors, investment marketers and porfolio managers. ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎As of the end of 2013, the capital maket value of the stocks traded on the Tel Aviv Stock Exchange stood at approx. NIS 702.4 billion, and the value of the bonds traded on the Exchange stood at approx. NIS 334 billion.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎In 2013, there was an increase in equity and debt raising on the Stock Exchange, and the ISA also expects an increase in the number of IPOs in 2014, after a significant decrease in the past few years.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ The volume of activity in mutual funds and exchange traded notes (ETNs) increased significantly in the reporting year. Assets under management in these activities as of the end of 2013, including portfolio management activities supervised by the ISA in these industries, exceeded half a trillion shekels. ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎In 2013, the ISA continued to promote its strategic Road Map Plan, which was published in October 2012.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎The ISA's Road Map is an extensive and comprehensive plan, which outlines the ISA's strategy and goals for the coming years.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ The document's underlying assumption is that informed regulation ensures the existence of a fair and efficient capital market, supports its stability over time and contributes to the confidence of the investing public as a whole and to attracting investors – both domestic and foreign – in particular. ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎The goals of the Road Map were developed according to the principles of balance, proportionality, transparency and deterrence, and are based on three elements: regulation, regulatory allowances and the development of the capital market.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ The ISA has developed goals and work plans for each of these subject matters. ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎The ISA will continue to promote and implement the Road Map in 2014:‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ Tel.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ 02-6556449‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ Fax‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ :‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ 02-6597449‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ 22 Kanfe Nesharim St., Jerusalem 95464 Israel ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ רשותניירותערך ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ISRAEL SECURITIES AUTHORITY ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ CHAIRMAN‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎In 2014, the ISA will continue to strengthen the capital market and Stock Exchange as a national resource, so as to enable better use of capital sources – while developing the Stock Exchange, protecting investors and continuing its unrelenting enforcement.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ The ISA will function to act in the following areas:‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎Regulation – There are currently a number of areas which are undergoing regulation, including: the transitioning of ETNs to a new supervisory framework; supervision over rating agencies; establishment of a‎ new supervisory body which will oversee CPAs; improvement and enhancement of companies' financial statements; regulating broker-dealer activities, etc.‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎Regulatory allowances – Despite the need for extensive regulation of the capital market, we should recognize that regulation needs to be proporational and balanced.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎In this context, the ISA submitted an initial series of allowances to the Knesset for approval. The allowances include both primary and secondary legislative amendments in a number of areas.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎These amendments include a series of regulation allowances for the supervised entities, which will not compromise the interests of the investing public, including revocation of the ISOX requirement for small-cap companies and extension of the effective period for shelf prospectus to three years.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ In 2014, the ISA will promote the approval of said legislative amendments and submit a second series of proposed allowances for the Knesset's approval.‎‎‎‎‎‎‎‎‎‎‎‎‎‎ This series is set to include significant allowances in the manner in which public offerings are made as well as allowances regarding reporting requirements. ‎‎‎‎‎‎‎‎‎‎‎‎Market development – in 2014, the ISA will focus on market development,‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎including the development of the Stock Exchange, the online voting system – which is designed to increase the participation of the public in general meetings, the introduction of foreign funds into Israel in order to increase competition, and the introduction of Loans and Deposits Funds (LDFs).‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎The ISA's work plan includes removing barriers and developing models which will provide a capital market-based financing alternative to fields and industries which currently rely, in terms of funding, mainly on the banking system and on private loans from insitutionals.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ Such projects require a complex and creative regulatory infrastructure, which includes – inter alia – tax incentives and government support.‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎ For this purpose, the ISA cooperates with the relevant government ministries, in an effort to formulate a comprehensive, financially-viable outline.‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎These projects include steps intended to facilitate the introduction of varied financial instruments, municipal bonds, funding of national infrastructure projects, funding of rental housing projects as well as funding of small and medium businesses. ‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎During the reporting year, as part of the plan to develop the capital market and Stock Exchange as a national resource, the Chairman of the Israel Securities Authority appointed two committees. ‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎The first one, the Committee for Promoting Investments in Public Companies Active in the Research and Development Fields, was established with the purpose of keeping Israeli technology companies within state boarders, by providing them with allowances in terms of access to capital resources on the Stock Exchange.‎‎‎‎‎‎‎‎‎‎ The Committee published its ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ Tel.‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ 02-6556449‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ Fax‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ :‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ 02-6597449‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ 22 Kanfe Nesharim St., Jerusalem 95464 Israel ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ רשותניירותערך ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ISRAEL SECURITIES AUTHORITY ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ CHAIRMAN‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ ‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎‎ recommendations in November, including a long list of proposed legislative amendments, which will allow young Israeli companies to obtain funding through the capital market and continue their activity in Israel, in lieu of merging with, or being acquired by, larger international companies.‎‎‎‎‎‎‎‎‎‎The ISA deems the relocation of Israeli companies abroad and the "exit culture" a significant loss of income for Israel, both in the short- and long term.‎ ‎‎‎‎‎‎‎‎‎ According to assessments, Israel loses USD 3 for each USD 1 obtained in an exit. Leaving these companies in Israel is essential, due to their potential contribution to domestic employment and to the Israeli economy's growth. Thus, the ISA attributes great significance to implementing the Committee's recommendations as soon as possible, including expanding the allowances related to task breaks for these companies in order to increase the chances that they remain in Israel. ‎‎‎‎‎‎‎‎‎The Committee for Increasing Trading Competition and Liquidity on the Stock Exchange was established due to the lower trading cycles on the Stock Exchange in the past few years, which is hurting both the primary and secondary markets.‎‎‎‎‎‎‎‎‎‎The vital need for the economy's growth and the need for an efficient distribution of its resources, as well as the existence of financial instruments which enable high level risk management, make the Stock Exchange a highly significant center of the capital market, demanding its efficient activity, especially
Load more

Recommended publications
  • Cellcom Israel Ltd
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20–F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________ to __________________ OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report ……………………………. Commission file number 001-33271 CELLCOM ISRAEL LTD. (Exact name of Registrant as specified in its charter and translation of Registrant’s name into English) ISRAEL (Jurisdiction of incorporation or organization) 10 Hagavish Street, Netanya 4250708, Israel (Address of principal executive offices) Liat Menahemi Stadler, 972-52-9989595 (phone), 972-98607986 (fax), [email protected], 10 Hagavish Street, Netanya 4250708, Israel (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act. Title of each class Trading Symbol Name of each exchange on which registered Ordinary Shares, par value NIS 0.01 per share (CEL) New York Stock Exchange (“NYSE”)*1 Securities registered or to be registered pursuant to Section 12(g) of the Act. None (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None (Title of Class) * We voluntarily delisted our ordinary shares from the NYSE on February 8, 2021.
    [Show full text]
  • Shmuel Hauser
    April 2014 Shmuel Hauser CURRICULUM VITAE AND LIST OF PUBLICATIONS • Education 1987 Ph.D. Temple University. Philadelphia, PA, USA 1982 M.A. Finance. Hebrew University. Jerusalem, Israel 1980 B.A. Statistics and Economics. Hebrew University. Jerusalem, Israel • Employment History 2011 Full Professor Ono Academic College 2005 Full Professor Ben-Gurion University (currently on unpaid leave) 1999-2005 Associate Professor Ben-Gurion University 1987-2003 Visiting Lecturer Rutgers University and Temple University 1995-1999 Senior Lecturer Ben-Gurion University 1987-2001 Adjunct Professor Department of Business Administration Hebrew University Prof. Shmuel Hauser page 2 • Professional Activities (a) Professional academic functions 2012 Member Council for Higher Education, Israel 2007-2011 Dean Faculty of Business Administration Ono Academic College 1995-2002 Acting Supervisor of the Finance Department Ben-Gurion University 1998-2001 Head of the Teaching Committee Department of Business Administration Ben-Gurion University 1995-1999 In charge of Faculty Seminars Ben-Gurion University (b) Additional professional academic functions Established a virtual trading floor for MBA students at Ono Academic College. This is a unique program for students who specialize in finance. (c) Professional functions outside universities/institutions 2013 Committee Member Committee for debt arrangement, Ministry of Finance, Israel 2011 Chairperson Israel Securities Authority 2011-2012 Committee Member Committee for enhancing competitiveness, Ministry of Finance, Israel 2011 Joint Chairperson Israel Accounting Standards Board 2011 Committee Member Advisory Committee on matters related to banking business, Israel 2011 Committee Member Licensing committee, Bank of Israel Prof. Shmuel Hauser page 3 2007 Economic Advisor on Banking Fees Economic Committee of the Knesset 2006-2011 Chairperson and Member Owner, Nartiv Ltd.
    [Show full text]
  • ISA Annual Report 2017
    ISRAEL SECURITIES AUTHORITY Annual Report 2017 ISRAEL SECURITIES AUTHORITY Annual Report 2017 The following text contains only selected chapters from the ISA annual report (2017). The translation is intended solely for the convenience of the reader, the ISA does not assume any responsibility whatsoever as to its accuracy and is not bound by its contents. For the original full Hebrew text click here Chairwoman's Message June 27, 2018 14 Tamuz, 5778 MK Moshe Kahlon MK Moshe Gafni Minister of Finance Chairman of the Knesset Finance Committee Ministry of Finance Knesset Dear Minister, Dear MK and Committee Chairman, Re: Report on the Activities of the Israel Securities Authority in 2017 In accordance with Section 14 of the Securities Law, 5728-1968, I respectfully submit to you this report on the activities of the Israel Securities Authority (hereinafter, “the ISA”) in the year 2017. This report contains a review of the main activities of the ISA in 2017 in the areas of capital market regulation and development, supervision, enforcement, and in other areas in which the ISA operates. Among the ISA’s numerous initiatives and the issues in which it was involved in 2017, the following significant issues should be noted at the outset: • Conclusion of the legislative amendment that shifts the structure of ownership of the TASE to a for-profit-corporation model. In the forthcoming year I expect to conclude this significant step, which is designed to create a division between TASE members and its shareholders in order to reduce conflicts of interest in the TASE, increase its appeal, and contribute to the prosperity of the Israeli economy.
    [Show full text]
  • Israel Chapter in the Virtual Currency Regulation Review
    Regulation Review Regulation the Virtual Currency Currency Virtual Virtual Currency Regulation Review Michael S Sackheim and Nathan A Howell and Nathan S Sackheim Michael Editors Michael S Sackheim and Nathan A Howell Editors lawreviews © 2018 Law Business Research Ltd Virtual Currency Regulation Review Reproduced with permission from Law Business Research Ltd This article was first published in November 2018 For further information please contact [email protected] Editors Michael S Sackheim and Nathan A Howell lawreviews © 2018 Law Business Research Ltd PUBLISHER Tom Barnes SENIOR BUSINESS DEVELOPMENT MANAGER Nick Barette BUSINESS DEVELOPMENT MANAGERS Thomas Lee, Joel Woods SENIOR ACCOUNT MANAGERS Pere Aspinall, Jack Bagnall ACCOUNT MANAGERS Sophie Emberson, Katie Hodgetts PRODUCT MARKETING EXECUTIVE Rebecca Mogridge RESEARCH LEAD Kieran Hansen EDITORIAL COORDINATOR Gavin Jordan HEAD OF PRODUCTION Adam Myers PRODUCTION EDITOR Anne Borthwick SUBEDITOR Janina Godowska CHIEF EXECUTIVE OFFICER Paul Howarth Published in the United Kingdom by Law Business Research Ltd, London 87 Lancaster Road, London, W11 1QQ, UK © 2018 Law Business Research Ltd www.TheLawReviews.co.uk No photocopying: copyright licences do not apply. The information provided in this publication is general and may not apply in a specific situation, nor does it necessarily represent the views of authors’ firms or their clients. Legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of October 2018, be advised that this is a developing area. Enquiries concerning reproduction should be sent to Law Business Research, at the address above.
    [Show full text]
  • Professor Shmuel Hauser
    Professor Shmuel Hauser Faculty of Business Administration, Dean ONO Academic College A B S T R A C T Professor Hauser is currently chairman of the Israeli Securities Authority. Professor Hauser was Dean of faculty of Business Administration at ONO Academic College (2008-2011) and Full Professor, Ben-Gurion. Ph.D. Temple University, USA; M.A. in Finance and B.A. in Statistics and Economics, The Hebrew University, Jerusalem. He was a visiting professor at Rutgers University and Temple University in the US, and Hebrew University, Israel. Professor Hauser is the former Chief Economist, Israel Securities Authority, chairperson of a Public Committee on ‘Do we need market makers on the Tel Aviv Stock Exchange? (Hauser Committee 1)", and a Public Committee on “Ways to minimize manipulation in the option market and thinly traded stocks? (Hauser Committee 2)". He is currently, Director in some leading financial firms, Owner of Nerative Ltd Economic consulting, owner and chairman. Hauser-Levy Ltd., Startup Investment Club, chairman. He is also former economic consultant to the Economic Committee of the Knesset (Israeli Parliament) investigating the Banks' fees. Former chairman of Gaon Mea-net Market Making Ltd. and Director in Maalot Rating Agency Professor Hauser Published numerous research papers on the Israeli capital market, as part of his work at the Securities Commission and the University, more than any other Israeli researcher on the Israeli capital markets. The papers were published in prestigious American journals including Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Business, Journal of law and Economics, and many others.
    [Show full text]
  • Report on the Activities of the Israel Securities Authority for 2012
    Report on the Activities of the Israel Securities Authority for 2012 1 March 27,2013 To: To: Mr. Yair Lapid, MK Mr. Nissan Slomiansky, MK Minister of Finance Chairman of the Knesset Finance Committee Ministry of Finance The Knesset Dear Sirs, Re: Report on the Activities of the Israel Securities Authority In accordance with Section 14 of the Securities Law of 1968 (hereinafter – the Law), I respectfully submit this report on the activities of the Israel Securities Authority (ISA) for 2012. 2012 emerged as a landmark year for of the capital market in Israel in terms of regulation. During this year, the Israel Securities Authority led a number of regulatory initiatives with the following purposes in mind: to increase investor protection, improve disclosure, reinforce existing gatekeepers, and preserve the public's trust in the local capital market. During this period, which was overshadowed by the global crisis in capital markets around the world, the ISA was required, more than ever, to stand on guard and dedicate significant time and manpower resources in order to protect – above all – the interests of the investing public, while enabling reporting corporations and other market players to conduct their business as smoothly as possible. The basic assumption is that balanced regulation ensures the existence of a fair and efficient capital market, supports its stability over time, while reinforcing the trust of the investing public in general, and, in particular, attracting investors – both local and foreign. In this respect, it should be noted that the ISA attributes great significance to cooperation with various regulators, so as to ensure efficient regulation of the capital market, provided that such cooperation does not impinge upon each regulator's independence as regards its purview.
    [Show full text]
  • Price Discovery During Parallel Stock-Option Preopening: an Improvement Or Ground for Manipulation?
    Price Discovery during Parallel Stock-Option Preopening: An Improvement or Ground for Manipulation? ‡ Shmuel Hauser** Haim Kedar-Levy*** Orit Milo-Cohen**** Key words: Manipulation; Liquidity; Pre-Opening trade; Price discovery. JEL Codes: D84, G12, G13, G14. ‡ We are thankful to Luigi Zingales, Yakov Amihud ,Jacob Sagi and participants at seminars/conferences at the IDC Herzliya IL, Surrey University UK, for helpful and insightful comments. Any remaining errors are ours. ** Chairmen of the Israel Securities Authority. Professor of Finance at Ono Academic College, and the Guilford Glazer Faculty of Business and Management, Ben Gurion University of the Negev. [email protected] *** The Guilford Glazer Faculty of Business and Management, Ben Gurion University of the Negev, and Ono Academic College. Corresponding author: P.O.B. 653, Beer Sheva 84105, Israel. [email protected] Tel. (972) 8- 6472-569, Fax (972) 8-6477 697. ** Ph.D. Candidate, The Guilford Glazer Faculty of Business and Management, Ben Gurion University of the Negev, P.O.B. 653, Beer Sheva 84105, Israel. [email protected] 1 Price Discovery during Parallel Stock-Option Preopening: An Improvement or Ground for Manipulation? ABSTRACT Many stock exchanges worldwide have long suspected that manipulative orders distort informative pricing during the pre-opening trading session. Using a unique dataset, this paper is the first to explore empirically the presence of illegal manipulation based on Kyle and Viswanathan’s (2008) criteria. They render manipulation 'illegal' if both informational (prices) and transactional (liquidity) efficiencies are deprived. We compare the indicative stock market index with the options-implied index, revealing significant price differences and illiquidity patterns similar to those predicted by theoretical models of manipulation.
    [Show full text]
  • Comment Letter on File No. 4-617
    ISRAEL SECURITIES AUTHORITY Department of International Affairs Yael Almog Senior Adviser to the Chairman and Director of International Affairs Dept. Israel Securities Authority February 18th 2011 The Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 USA Re: Study on Extraterritorial Private Rights of Action – SEC Request for Comments (Release No. 34-63174; File No. 4-617) The Israel Security Authority (ISA) welcomes this opportunity to express its position in relation to extraterritorial private rights of actions following the Supreme Court's decision in Morrison v. National Australia Bank. In our comments we have limited ourselves to Morrison's impact in relation to dual listed securities. Throughout our comments, the term dual listed securities refers to an arrangement whereby securities are (i) listed on both a domestic US securities exchange and an exchange outside the US and (ii) the requirements of the US regulation applicable to the listing (e.g. disclosure requirements) have been adopted or recognized as equivalent, in the non-US market. This matter is of direct relevance to the Israeli and US securities market since there are currently forty seven companies (both US and Israeli) that have dual listed their securities on both a domestic US securities exchange and the Tel Aviv Stock Exchange (TASE). However, the arguments set out below apply equally to any similar arrangement in other jurisdictions around the world whether such arrangement is unilateral, as in Israel, or is based on a mutual recognition agreement between the SEC and a non-US regulatory authority. In our opinion, claimants who believe they have a valid claim under section 10(b) of the Securities Exchange Act against an issuer that has dual listed its shares and the US regulation applies in the non-US market, should have a private right of action in the US irrespective of whether they purchased the relevant securities on the US domestic exchange or on the non-US exchange.
    [Show full text]
  • ISRAEL SECURITIES AUTHORITY Annual Report 2016
    ISRAEL SECURITIES AUTHORITY Annual Report 2016 *The following text contains only selected chapters from the ISA annual report (2016). The translation is intended solely for the convenience of the reader, the ISA does not assume any responsibility whatsoever as to its accuracy and is not bound by its contents. For the original full Hebrew text click here. ר ש ו ת נ י י ר ו ת ע ר ך ISRAEL SECURITIES AUTHORITY יושב ראש CHAIRMAN May 10, 2017 / 14 Iyar, 5777 MK Moshe Kahlon MK Moshe Gafni Minister of Finance Chair of the Finance Committee Ministry of Finance Knesset Dear Minister, Dear MK and Committee Chair, Re: Report on the Israel Securities Authority’s Activities In accordance with Section 14 of the Securities Law, 5728-1968, I respectfully submit to you this report on the activities of the Israel Securities Authority (hereinafter, “the ISA”) in the year 2016. In recent years, the world has undergone rapid change, and the world in which regulated entities operate is also constantly changing. Financing options are becoming more diverse, and competition with the world’s major securities exchanges and other financial sources is becoming fiercer. At the same time, yet for different reasons, negative sentiment in financial markets and the TASE has emerged. This negative sentiment deters entrepreneurs from raising capital on the TASE, which consequently compounds liquidity and pricing concerns. As the number of stock issues diminishes, the demand for debt issues, which is also related to the low interest environment, is on the rise. In such an environment, investors’ risk appetite increases, and financial products change form.
    [Show full text]
  • The Committee for Promoting and Institutionalizing Digital Markets in Israel an Interdepartmental Committee of the Israel Securities Authority
    The Committee for Promoting and Institutionalizing Digital Markets in Israel An Interdepartmental Committee of the Israel Securities Authority January 2020 Digital Markets in Israel 1 Executive Summary n accordance with its strategic program to this technology, including the use of tokens and promote innovation in the capital market, the ISA smart contracts. is taking action in multiple channels to develop an advanced, innovative, and attractive capital Globally, DLT is being used as a base for new Imarket for the retail investors and corporations. initiatives by traditional financial organizations The ISA promotes the adoption of innovative including international banks, major exchanges, technologies that offer potential benefits to the and securities clearing houses, in their efforts public by cutting costs, enhancing access to to discover use cases for the technology’s the capital market, and generally improving the assimilation in the capital market. Their ultimate financial services sector in Israel. aim is to enhance the securities value chain, which is the focus of this report. Evidence shows that In view of the above, on July 2, 2019, ISA Chair the trading and settlement platforms that have Ms. Anat Guetta appointed an interdepartmental made relatively rapid progress were established committee to promote and institutionalize digital as secondary or alternative trading platforms markets in Israel (“the Committee”). The Committee (e.g., ATSs in the US, and MTFs in the EU) by focused on platforms for issuing, trading, clearing relative newcomers to the industry that consider and settlement based on distributed ledger themselves high-tech ventures aiming to compete technology (DLT), and on the typical features of with traditional exchanges.
    [Show full text]
  • Report on the Activities of the Israel Securities Authority
    Report on the Activities of the Israel Securities Authority For 2011 1 Table of Contents I Functions of the ISA II The ISA and its Employees III ISA Departments IV Research, Development and Economic and Strategic Counseling Department 1. Strategic counseling 2. Economic counseling 3. Committee on Increasing Competitiveness in the Economy 4. The materiality requirement for restatements 5. Cooperation with the Milken Institute and the Koret Foundation 6. Competitive procedure for conducting research with the Department of Research, Development and Economic and Strategic Counseling 7. Research cooperation between the ISA and academic institutions 8. Supervision over the secondary market and Stock Exchange V. Corporate Finance Department A. General B. Supervision 1. Public Reporting – data and highlights (a) Prospectuses and capital raising (b) Reporting requirements (c) Financial reporting and valuations 1. Review of financial statements 2. Valuations (d) Transactions with a controlling shareholder (e) Private offerings (f) Purchase offers (g) Bond settlement agreements and bond trustees 2. Reports filed with the ISA and requests for exemptions/extensions (a) Termination of reporting requirements (b) Exemption applications (c) Extension applications 2 3. Audits and outsourcing in the Corporate Finance Department 4. Underwriter registry 5. Dual listing C. Regulation – staff position papers and special projects in 2011 1. Staff and Plenum position papers and FAQs 2. Requests for pre-ruling 3. Accounting and auditing enforcement decisions (a) Decisions on accounting issues (b) Decisions on auditing issues 4. Special projects in 2011 (a) The Reporting Improvement Project (b) Underwriting (c) Corporate Governance – Amendments 16 and 17 to the Companies Law (d) ATM (e) Revocation of Regulation 51(b) (f) Supervision over Independent Auditors (PCAOB) (g) Handling the crisis (h) Public shells D.
    [Show full text]
  • Inventing Israel's Capital Markets
    (RE)INVENTING ISR AEL’S CAPITAL MARKETS Financing the Transition From Startup Nation to Global Nation Financial Innovations Lab® Report March 2014 Financial Innovations Lab® Report (RE)INVENTING ISRAEL’S CAPITAL MARKETS Financing the Transition From Startup Nation to Global Nation March 2014 Financial Innovations Lab® Report The Milken Institute’s signature tool for generating solutions is the Financial Innovations Lab. Each Lab assembles a multidisciplinary group of investors, industry experts, and public officials to tackle a specific financing or policy question. During an intensive daylong workshop, they explore the problem from every angle. It’s a roll-up-your-sleeves approach that encourages collaboration and practicality. The results are fully documented in our Financial Innovations Lab reports—and the recommendations are ready to be put to work in the marketplace and the policy arena. Acknowledgments This Lab report was written by Glenn Yago and Steven Zecher. Additional writing and editing were provided by Caitlin MacLean and Dinah McNichols. We are grateful for the detailed review by Lab participants and edits received by Rafi Musher, Stax Inc.; Roger Stein, State Street Global Exchange and the MIT Financial Engineering Laboratory; Steven Schoenfeld, Blue Star Global Investors; Tally Zingher, Tel Aviv University; Shmuel Ben-Tovim, Tel Aviv Global City; Seth Merrin, Liquidnet; Prof. Shmuel Hauser and Ornit Kravitz, Israel Securities Authority; Prof. Larry Harris, University of Southern California; and Prof. Eugene Kandel and Morris Dorfman of the National Economic Council in the Prime Minister’s Office. We are also grateful to former and current Milken Institute Fellows Stanislav Sokolinski (Harvard University), Gilad Brand (Ministry of the Economy), and Noa Litmanovitz (Prime Minister’s Office, National Economic Council) for their insights and research.
    [Show full text]