Offering Services Of Securities Trading Systems

In July 2017, Amendment 63 to the Securities Law, 5728 – 1968, concerning the restructuring of the stock exchange, came into effect.

Amendment 63 prescribes that it will no longer be possible to offer securities trading services through a trading system being operated by a non-licensed entity, i.e. a system not managed by a stock exchange licensed to operate in Israel. This is a sweeping provision that does not specify any exceptions to the application. Neither does it differentiate between sophisticated customers and "regular" customers.

According to Amendment 63, entities who wish to offer securities trading services through a trading system managed by a foreign exchange must submit applications for a permit to do so to the chairman of the Israel Securities Authority.