The regulatory cooperation will enable ISA and SGX RegCo to exchange information, and enhance how both regulators assess and monitor listing applicants and issuers’ compliance with the ISA relevant securities law and the listing rules of SGX.
The agreement supplements and builds upon the business partnership that TASE and SGX entered into to grow capital-raising opportunities for companies.
“We deeply value the ongoing cooperation with SGX RegCo and hope to implement this MOU soon for the benefit of investors and companies’ dual-listed on both markets. This MOU further improves ISA’s unique and successful dual listing arrangement, and we anticipate more companies listed outside Israel to add Tel-Aviv as a listing venue and enjoy the advantages of the Israeli capital market, including the deep exchange-traded bond market”, Mr. Offir Eyal, Director of International Affairs and Business Development Department at the Israel Securities Authority.
“This cooperation between the Israel Securities Authority, which is the national securities regulator, and SGX RegCo, Singapore’s front-line market regulator, sends a strong signal of our joint commitment towards addressing investor concerns. This will aid the confidence of investors venturing into companies of a different jurisdiction or region,” said Tan Boon Gin, CEO of SGX RegCo
The dual listing arrangement allows companies whose securities are listed on certain selected stock exchanges worldwide (NASDAQ, NYSE, LSE, HKEX, TSX and SGX) to list also on TASE, based on their disclosure in accordance with foreign laws, rather than Israeli law. This arrangement is based on the understanding that globalization enables companies to choose more than one location for trading, alongside competition between the markets for large multinational companies.
There are currently about 60 companies on the Tel Aviv Stock Exchange that are dual listed. In recent years, these companies have accounted for more than 40 percent of the market cap of TASE and its main Indices. Those companies are also responsible for a significant proportion of TASE’s trading volume. The dual-listed companies themselves also benefit greatly from the dual listing, where on average about 40 percent of the trading in their shares occurs on TASE.