|How does one become a TASE Member?|
|Information on TASE members|
Who is a TASE member?
A TASE member is a financial entity that has the right to receive from the TASE a direct connection to trade on the TASE, via a direct communications line. The TASE member transmit buy and sell orders of securities and derivatives traded on the TASE, on behalf of its client and for itself (Nostro).
What is the difference between a TASE member and a company traded on the TASE?
A TASE member is an entity that buys and sells securities and derivatives traded on the TASE, whereas a company traded on the TASE (a public company) is a company whose shares are traded on the TASE (shares, bonds, options, rights deeds). A TASE member may also be a public company whose shares are traded on the TASE.
For example: Bank Hapoalim, Bank Leumi.
Who are TASE members?
TASE members are comprised of four groups:
- Israeli bank
- Foreign bank – International bank with a branch in Israel, who has received approval of the Bank of Israel to register as a foreign bank.
- Israeli investment house which is not bank (NBCM) – Israeli broker
- Remote Member - An international bank or international investment house that was incorporated outside Israel, that operates as a stock exchange member on a stock exchange in the country in which it was incorporated, and doesn't have a permanent representation or branch in Israel.
TASE member list >
Further information regarding TASE membership >
Further information on remote membership on TASE >
|Who can become a TASE member?|
Are there different tracks for being accepted as a TASE member?
Banks and investment houses with diverse activity in securities and financial assets traded on the TASE may be accepted as TASE members through several tracks:
- Israeli banks
- Investment houses in Israel that are not banking corporations (NBCMs) – Israeli brokers
- Large international banks (with equity of at least US $ 1 billion - this requirement is in discussion for reduction in the near future) and large international investment houses can, subject to additional requirements, be accepted into remote membership on the TASE (without permanent representation in Israel).
Does the TASE have the authority to supervise TASE members?
The TASE supervises its members by virtue of the Securities Law
| ||Investment Opportunities for Foreign Investors|
|Being a customer of a local TASE member|
Subject to the laws applied in an investor's home country and in Israel, any investor can become a client of a local TASE member and submit to that member transaction orders for securities and financial assets.
Local TASE members are set up to receive client's transaction orders in a number of ways:
- Various modes of communication, such as telephone, fax and e-mail
- A direct access to TASE trading (Direct Market Access – DMA) by:
- Linking the client to the TASE member's trading system over the Internet
- Linking the client's trading system to that of the TASE member
- Global trading networks, such as SunGard's system, linked to the TASE member's trading system of directly to TASE.
|Being a client of a foreign bank or investment house which is a TASE member|
TASE currently has five foreign members:
- Merrill Lynch
These members enable their customers to trade on TASE as they trade on other markets around the world.
|Being a client of an investment house with international activity|
Numerous international investment houses that do not have permanent representation in Israel are active on the TASE.
These investment houses engage in proprietary trading as well as conduct transactions on behalf of their clients directly through TASE members or indirectly through third-party investment houses, which are not TASE members.
Clients of these investment houses submit transaction orders to TASE, as they do in other markets, subject to the laws applicable to them and to internal rules and procedures.
| ||Clearing, Settlement and Custodial Services|
|Clearing, Settlement and Custodial Services on TASE|
The TASE-CH provides clearing, settlement and custody services for financial assets traded on the TASE. Most TASE members
are also members of the TASE Clearing House (TASE-CH).
A client of a TASE member (who is also a member of TASE-CH) can conduct transactions through a given TASE member and hold his financial assets either with the same or another TASE member (as long as it is also a TASE-CH member).
TASE implements efficient mechanisms for transferring financial assets between client accounts in cases in which the client trades through one member and holds its assets with another.
For additional information:
|Are there mechanisms to protect investors on the TASE?|
Various mechanisms are deployed to protect the investing public, as stipulated in Legislation and the TASE Rules and Regulations.
Capital Market Regulation
- The TASE operates under a license granted by the Minister of Finance.
- The Israel Securities Authority supervises the fair and proper management of the TASE, as well as the activity of the TASE Clearing House and MAOF (Derivatives) Clearing House.
- The Ministry of Finance supervises financial services corporations, including: insurance companies, pension funds and provident funds
- TASE members that are banks are supervised by the Supervisor of the Banks at the Bank of Israel, as well as by the TASE regarding the issues involving integrity and fairness of trading
- Non-banking member corporations are supervised by the TASE, by its Membership and Supervision Department
Further information on capital market regulation >
TACT trading system
"TACT", TASE's automated trading system, incorporates various investor protection mechanisms. The most prominent of these is the "circuit breaker" mechanism, which halts trading on the equity market in cases of extreme volatility.
TASE Clearing Houses
In order to mitigate counterparty risk, the TASE Clearing House (TASECH) acts as central counter party (CCP) to all transactions. In this manner it takes on itself the risk that one of the parties to a transaction will not meet its commitment.
|Does TASE collect member fees from TASE members?|
TASE is entitled to collect fees and handling charges related to trading, clearing and settlement and custody services, as well as information provision, as stipulated in the TASE Rules and Regulations.
|Does TASE have Rules & Regulations? And if so, do they allow the TASE to set guidelines?|
The law requires the Tel Aviv Stock Exchange, as a condition for obtaining a license, to implement rules. The rules must be approved by the Israel Securities Authority and the Minister of Finance.
The TASE Board of Directors may amend the TASE Rules. The change requires the approval of the Israel Securities Authority, who in turn submits a notice of the change in to the Minister of Finance. The change takes effect ten days after the date the notice is delivered, unless the Minister of Finance states his objection to the change before the end of the said period. Changes in the regulations pursuant to the TASE rules require the approval of the Israel Securities Authority.
The rules and regulations of the TASE include, among other things, rules regarding: TASE members, listing of securities for trading, trade suspensions and maintenance rules, trading on the TASE, publication of information by the TASE, and the commissions the TASE collects.
|Trading Days and Holidays|
|Where can I view TASE Financial Reports?|
|Additional explanations on how to navigate the TASE website|
|Inquiries to TASE's Membership & Surveillance Department |
|For inquires regarding TASE membership or members, contact TASE Membership & Supervision Department through the Contact Us form.|
|For technical support regarding the TASE website, call 076-8160666, on TASE business days.|