Unlike most Western countries (eg the UK US EU Switzerland Australia New Zealand and Canada) where brokerage activity is statutorily supervised and regulated Israel has to date not enacted dedicated legislation or promulgated comprehensive bespoke regulation of this area.
Broker-dealer activity is partially regulated in Israel on the basis of several different laws. The primary piece of legislation is the Securities Law 5728-1968 (Securities Law) – which is the most significant legislation that regulates the securities market in Israel. This law empowers the Israel Securities Authority (ISA) which has regulatory reach over the securities markets in Israel and regulates electronic trading platforms (Trading Platforms) which can be seen as a narrow sub-set of broker-dealer activity. A Trading Platform is defined in the Securities Law as: (i) a computerised...