ISA and Bank of Israel signed a memorandum of Cooperation aimed at creating a mechanism for sharing information on the system of payments and clearing of payments. The Memorandum was signed by the Supervisor of the Secondary Market at the ISA, Mr. Ronen Madar, and the Supervisor of Accounting, Payments and Clearing Department at the Bank of Israel, Mr. Rafael Lankri.
The agreement is aimed at furthering the cooperation in the area of supervision, making it more uniform fair and effective. It shall comply with the international Best Practice standards in this field. Furthermore, it will strengthen stability and efficiency of the Israeli system of payments. The Memorandum also defines areas of responsibility of each organization and creates the effective cooperation mechanism.
The ISA and the Bank of Israel agreed on advanced exchange of information as regards the changes or new regulations, within their respective areas of responsibility, which might significantly affect the aforesaid areas or the competition and stability of the relevant markets.
Under the System of Payments Law, Bank of Israel is responsible for supervision of the system of payments and the clearance of payments, as well as for ensuring regular and stable functioning of the financial system and the efficiency of payments in Israel as a whole. The Bank of Israel maintains ongoing contacts with all the users of the ZA”AV system, including the TASE clearing department, and monitors the ongoing activities of the system. Bank of Israel represents the State in various international forums (World Bank, IMF, BIS, etc.). Bank of Israel shall forward relevant regulatory instructions to the ISA, for implementing commonly accepted international standards as regards the supervision of the TASE clearing department, since the ISA is responsible for supervision and stability the TASE clearing department.
The supervision will be carried out according to the Securities Law and accepted international standards, it will apply to the clearance of securities as well as to the clearance of payments.
Mutual exchange of information will also be done by means of a coordinating committee for supervising the system of payments and clearance of payments. The committee will meet at regular intervals, no less than once every three months. The gathering of information will be done in accordance with the authority invested in each organization by law. The ISA and the Bank of Israel will collect and exchange data and information. This exchange will be subject to the discretionary decision of the aforesaid organizations, in cases where the holder of information perceives significant danger to the clearing activities.