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The ISA Published a Suggested List of Stock Exchanges that meet the Criteria for ETFs Dual Listing on the Tel Aviv Stock Exchange

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The ISA Published a Suggested List of Stock Exchanges that meet the Criteria for ETFs Dual Listing on the Tel Aviv Stock Exchange

11 July 2022

Another significant step towards opening the Israeli capital market to the largest and most professional asset managers in the world!

Following the recent amendment in the Foreign Funds Regulations, according to which listing of traded foreign funds will not be limited to funds that are traded on stock exchanges specified in the Securities Law, but rather be subject to the discretion of the ISA (for further information see our client update here), the ISA published a list of stock exchanges which in its opinion meet the conditions set forth in the Foreign Funds Regulations.

In order to compile the list, the ISA examined stock exchanges on which ETFs are traded based on various parameters such as the daily trading volume, the amount of funds listed and the aggregate amount of the ETFs assets under management that are traded on each stock exchange.

The ISA proposed that the list will include stock exchanges that meet one or more of the following criteria, which also characterize the most liquid exchanges that have the highest trading volumes: (a) the total assets traded through ETFs is USD 700,000 million or more; (b) the number of ETFs on the exchange is more than 500 Funds.

In light of the aforesaid, the following is a suggested list of stock exchanges which, in the opinion of the ISA, meet the aforesaid conditions:

1. New York Stock Exchange (NYSE)
2. National Association of Securities Dealers Automated Quotation Global Select Market (NASDAQ)
3. Chicago Board Options Exchange ® (Cboe) BZX
4. London Stock Exchange (LSE)
5. Börse Berlin
6. Euronext
7. ® Xetra
8. SIX Swiss Exchange
9. BX Swiss

It should be clarified that the proposed list is not a closed list. A foreign fund traded on other stock exchanges may apply for dual listing in Israel, subject to the ISAs examination that it meets the conditions set forth in the Foreign Funds Regulations, including whether the stock exchange on which it trades is characterized by significant trading in mutual funds, as detailed above.

Public comments regarding the proposed list of exchanges will be received by July 27, 2022.

Herzog, Fox & Neeman represent the vast majority of global asset managers, mutual funds and ETFs that are currently registered in Israel and will be happy to be at your service for any issue in these areas.

Liat Maidler | Partner
Head Of Capital Markets & Securities Regulation
Banking Department

MaidlerL@herzoglaw.co.il

 

Limor Tshuva | Associate
Capital Markets & Securities Regulation
Banking Department

TshuvaL@herzoglaw.co.il

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