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.
TASE Rules and Regulations Sections
The TASE Rules and Regulations are divided into several sections:
- TASE Companies Rules and Regulations
- Clearing and Settlement
- Trading on the TASE
- Membership Rules & Regulations
- Derivatives (MAOF) Rules & Regulations
- Publication of Information and Price list
Trading on the TASE through TASE Members
The TASE Rules and Regulations set forth the terms of qualifications for TASE membership and the procedure for acceptance of new members. In addition, the Rules and Regulations stipulate the areas of activity permitted to non-bank TASE members (NBCMs), the obligations of TASE members vis-a-vis the TASE and its members, and rules of conduct for TASE members towards their customers.
Trading on the TASE is carried out through the TASE members, based on the guidelines set forth in the TASE Rules and Regulations.
The TASE supervises and controls compliance with the TASE Rules and Regulations by TASE members. When necessary, the TASE implements a disciplinary process against members which have not complied with the directives of the Rules and Regulations.
Listing Securities on the TASE
The Rules and Regulations establish threshold requirements for listing securities. The Rules and Regulations also establish maintenance rules for companies which list securities on the TASE.
Clearing is handled by two clearing houses:
- The Tel Aviv Stock Exchange Clearing House Ltd. (“TASECH”), which clears and settles transactions in securities listed on the TASE, excluding derivatives (options and futures). This clearing house also provides additional clearing services, such as clearing non-listed securities, services for securities traded outside of Israel provided by Citibank to TASECH members, and more.
- The Derivatives Clearing House Ltd., which issues derivatives and clears derivatives transactions on the TASE.
Each Clearing House operates under bylaws established by its board of directors.