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The Israel Securities Authority (ISA) has endorsed a resolution by the Tel Aviv Stock Exchange board of directors, to allow major international financing institutions to serve as remote members of the exchange, even if they do not maintain a representation in Israel.
Eligibility for remote membership in the TASE is confined to international banks and investment houses that have at least ten years' membership in one of the following exchanges: the London Stock Exchange, Euronext, NYSE, DTB (Frankfurt), Eurex (Germany), SWE (Switzerland), or the TSE (Tokyo).
Remote membership is regular practice at most of west European exchanges. Tel Aviv's remote members will be joining international institutions that have representations in Israel, and which have become members of the exchange: UBS, Deutsche Bank, HSBC and the most recent arrival, Citibank.
"The strength that the Tel Aviv Stock Exchange has demonstrated in recent years, and crucial economic reforms carried out in the capital market have been attracting major investment houses to Tel Aviv", stated Ester Lebanon the Tel Aviv Stock Exchange CEO. "We can expect that the arrival of remote members to amplify activity by foreign investors in Israel's financial markets".
The TASE decision, now ratified by the Israel Securities Authority, states that to be eligible for remote membership, the bank or firm must have shareholders' equity of at least a billion dollars. Also, it must appoint a senior manager to be responsible for its activity on the Tel Aviv Stock Exchange.
