Announcement regarding the date of entry into force of the Securities Regulation (Trading Platform to its own account) – 2014
- On June 8th, 2010 the Knesset approved the 42nd Amendment to the Securities Law of 1968 (hereafter: “amendment 42” and “the law”, accordingly), which added chapter seven “c” dealing with trading platform to its own account. The main purpose of chapter seven “c” is to regulate the activity of companies managing trading platforms and to subordinate these trading platforms to effective oversight by the Israel Securities Authority (hereafter “ISA”). The law’s date of entry into force is to follow the entry into force of its accompanying set of regulations.
- On August 3rd, 2014, the Knesset’s Finance Committee approved Securities Regulations (trading platform to its own account) – 2014 (hereafter: “the regulations”), which supplement amendment 42. The regulations were published in Reshumot (the State of Israel’s official publication of laws and regulations) on November 26th. 2014. The regulations will come into force six months from their publication in the Reshumot (hereafter “date of entry into force”). Accordingly, the date of entry into force is May 26th, 2015.
- Under the transitional provision set in the regulations, a company that files an application for a license to manage a trading platform (hereafter: “license application”) prior to the date of entry into force, will be allowed to continue to operate the trading platform after the date of entry into force as long as the ISA has not issued a decision on the application*
- A license application will be filled with the ISA by electronic filing using the ISA’s report website (the MAGNA system) through dedicated MAGNA filing forms and in a form which will allow the department’s staff to evaluate the license application according to the law and the regulations.
- Companies which intend to file a license application should allow for sufficient time to prepare prior to filing the license application in order to set up the connection with the MAGNA system and to fill in dedicated forms.
- For assistance with necessary preparations for operating with the MAGNA system please follow this link (Hebrew site).
- For questions and clarifications please refer to the department’s staff.
Asaf Erez – [email protected]
Adv. Amit Timor – [email protected]
* For the application of the transition rule on a company transferring its operation see section 97(b) of the regulations.