Membership

​Who are TASE Members?

TASE members are banks and brokerage firms (a non-banking member corporation). Trading is carried out between TASE members on behalf of their clients. There are currently several types of TASE members:
  • Israeli banks
  • Foreign banks - International banks that have a branch in Israel and who have received the approval of the Bank of Israel to register as a foreign bank
  • Israeli Brokers (NBCMs)
  • Remote members

Current Composition of TASE Membership

  • 11 Israeli banks 
  • 7 Brokerage firms, including 2 subsidiaries of international investment houses
  • 3 Foreign banks 
  • 2 Remote Members

 

The List of TASE Members >

The Brokers' Role

Brokers are companies whose main occupation is handling security-related business on behalf of others (trading on the stock exchange, portfolio management, investment advice, investment marketing, etc.). A broker may also engage in other areas of activity such as provident fund management, mutual fund management, participation in public offerings, etc., on their own, or through subsidiaries.

The TASE Membership and Supervision Department

The Membership and Supervision Department conducts the following activities:

Licensing of TASE members:

           ·   Applications for TASE membership (licensing).
           ·   Israeli brokers' applications to engage in new activities.
           ·   Requests for approval of changes in ownership and control of Israeli brokers.

Supervision of TASE members:

           ·   The supervision of banks, including foreign banks as well as the remote member, focuses on issues related to proper and fair trading, and the fairness of their dealings with their clients, as far as securities activity on the TASE is concerned. The TASE does not supervise the stability of the banks, of the foreign banks or the remote member. These entities are supervised by other regulators in this regard.
           ·   The supervision of Israeli brokerage firms, in addition to subjects related to proper and fair trading, also focuses on the stability of Israeli brokers as well as their conduct in matters related to corporate governance. Accordingly, they must also meet the requirements for shareholders' equity, within the limits on credit that members may grant their clients, in various reports to their clients and to the TASE etc.

TASE Membership Qualification Conditions

Qualification conditions for TASE membership are tailored to each of type of member, and are in accordance with the nature of the TASE's supervision on the members.

Qualification Conditions Applicable to Banks

Qualification conditions for banks focus on the following requirements:
  • The manager of the securities department has knowledge and training in the capital market
  • Adequate insurance

Qualification Conditions Applicable to Foreign Banks

 Qualification conditions for foreign banks focus on the following requirements:

  • The manager of the central securities unit in Israel has knowledge and training in the capital market
  • Adequate insurance
  • Appointment of an internal auditor for branches in Israel
  • The existence of a mechanism, means, information systems and professional personnel to enable its activity on the TASE

Qualification Conditions Applicable to Israeli Brokers

Qualification conditions applicable to Israeli brokers cover several areas:
  • Corporate Governance
    • Controlling shareholders and interested parties are of good repute 
    • Appointment of a board of directors and an audit committee
    • Approval of ownership and control changes is required
    • Appointment of various functionaries
    • Duty to notify TASE of appointments or retirements
  • Stability
    • Minimum equity and liquidity requirements
    • Adequate insurance
  • Operational Aspects
    • Existence of mechanisms, means and information systems (trading system, back office system, bookkeeping system)
    • Existence of professional personnel

Qualification Conditions Applicable to a Remote Member

Qualification conditions for a remote member focus on the following requirements:

  • Membership in a stock exchange that is recognized abroad  (an exchange listed in the Regulations)
  • Incorporation in one of the countries specified in the Regulations
  • Supervision by competent authorities abroad
  • Minimum equity
  • Adequate insurance
  • The existence of a mechanism, means, information systems and professional personnel to enable its activity on the TASE 

To a summary of the qualifications required for TASE membership >

TASE Rules and Regulations - Membership and Supervision of TASE Members

The rules related to requirements of TASE members in the areas of licensing and supervision are detailed in the TASE Rules. The Rules and Regulations are divided into chapters, by subjects. Each chapter of the Rules has a corresponding chapter of Regulations. The Rules stipulate the guidelines in general, in concise form. The Regulations expand and clarify the principles set forth in the Rules. When reading a chapter of the Rules, consulting the corresponding chapter of the Regulations is recommended.
Membership Rules and Regulations >

The Maximum Value for Collateral Purposes of Bonds Issued by the State of Israel and Short Term Bonds ("Makam")

As part of the directives of the Rules and Regulations, maximum values were set for the securities and financial assets that can serve as collateral against the granting of credit by the NBCM to customers. These values change from time to time as part of changes made in the guidelines.
 
However, the maximum value for collateral purposes of bonds issued by the State of Israel and bonds of the short-term loan type ("Makam") is set according to the methodology set by the TASE Board of Directors. The values are based on a VaR (Value at Risk) model, in consideration of extreme scenarios which occurred in the Israeli economy over the past 15 years that have had an impact on capital market prices. These values change frequently and are updated on the TASE website.
 
To the value for collateral purposes of bonds issued by the State of Israel >