On July 6, 2017, Section 49A of the Securities Law, 5728-1968, came into force, which concerns the prohibition of offering securities trading services through a securities trading system that is not managed by a stock exchange. However, alongside the prohibition, the Chairman of the Israeli Securities Authority ("ISA") was authorized to grant a permit to apply for such an offer if he found that this does not harm the interests of the Israeli investors.  

After discussions held by our firm with the ISA (on October 23, 2017), our firm published a customer update in which we recommended that entities or individuals wishing to continue offering securities trading services through a securities trading system managed by an exchange outside of Israel, should apply to the Chairman of the ISA. To view the Client Update – click here.  

After discussions and meetings with the ISA, on November 8, 2017, the ISA published a notice stating that the applicability of the prohibition in section 49A is very wide and that the ISA is currently examining the policy of granting the relevant permits. The ISA indicated that until the policy is published, the ISA staff will refrain from taking enforcement measures against a person engaged in providing such services.