The Israel Securities Authority (ISA) is extending the dual-listing arrangement for Exchange Traded Funds (ETFs) to additional leading stock exchanges around the world. Extending this arrangement is a major part of the ISA market developing efforts to open Israel’s capital market to leading international participants and to diversify the investment instruments available to the private investors in Israel. Today, the ISA issued a call for public comments on expanding the list of exchanges to be included in the dual-listing arrangement for ETFs.
The ISA intends to define a separate list of global stock exchanges whose traded ETFs may also register on TASE. This list will be determined independently of the existing dual-listing arrangement list that includes the stock exchanges whose traded corporations may also trade on TASE. According to the proposal, the new list of exchanges will include major US exchanges on which ETFs are traded, including NYSE, Nasdaq, and BZX, and leading European exchanges including the Euronext exchanges, and London, Berlin, Zurich, Frankfurt and Milan exchanges.
Listing ETFs on TASE under Amendment 23 of the Joint Investment Trust is progressing with success, and 23 foreign ETFs are already trading on TASE. By the end of September, these ETFs raised more than NIS 640 million, and recorded a threefold increase in holdings since they were first offered to the public in Israel in late 2019. The proposed amendment will supplement Amendment 23 of the Joint Investment Trust Law, and is expected to significantly increase the number of foreign ETFs able to list for trading on TASE, and to expand the geographic and sectorial diversity of offerings to investors.
Anat Guetta, ISA Chairwoman stated today: “We are working to strengthen and enhance Israel’s Public Capital Market and to increase “the size of the pie.” Making our market more attractive to international players will also benefit the general public by increasing the diversity of available investment options. This measure joins previous efforts led by the ISA, including the alignment of ISA activities to developing trends in globalization, and opening the Israeli capital market to global markets. Other steps, which include allowing companies to report in English and to use IXBRL, are expected to align the Israeli market with the standards of the world’s most advanced capital markets.”