ISA Urges to Establish an Israeli Digital Securities Trading Platform


The Israeli Securities Authority (ISA) seems set to embrace blockchain technology after recommending the promotion of an Israeli digital securities trading platform. Moreover, the committee focuses on digital platforms for offering, trading, and clearance of securities using distributed ledger technology.

15 January, 2020 | AtoZ Markets – The Israeli Securities Authority (ISA) recommends promoting a digital platform for securities trading, according to an ISA draft reported by the Globes on Tuesday. However, the draft report will be revealed to the public next week at ISA’s annual CapiTech conference. The conference will feature the theme of technological innovation in the Israeli capital market. 

Israeli Digital Securities Trading Platform Using Distributed Ledger Technology

The committee is bullish on the application of the decade-old technology and believes it has “potential for advancement in the Israeli capital market.” Moreover, Orly Koren, deputy director of the ISA supervision department and head of the committee, said: 

“The committee focused on its work on digital platforms for offerings, trading and clearance of securities using distributed ledger technology [DLT]. “

ISA will also publish an invitation to companies in the sector to present bids for establishing a digital securities trading platform. However, the ISA says:

“We urge the public to raise regulatory issues regarding the promotion of markets using innovative technologies. In particular, the issues may constitute an obstacle to the development of this sector in Israel”.

According to the report, the insights that emerged from the committee’s work, cover five main topics. The committee also stated:

“DLT technologies have the potential for advancement in the Israeli capital market. Formulating future steps for the adoption of these technologies will take into account the risks arising from their use. We are also planning how to manage these risks in a way that do not prevent their promotion. “

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Blockchain Companies are Increasing in Israeli

The committee recommends that the ISA should adopt a neutral approach. The approach will ensure that the technology meets the required standards, and its use does not contravene regulatory objectives.

Tel Aviv is already a leading tech city in Isreal and many blockchain companies are already growing there. According to a survey by the Israeli Bitcoin Association, the number of blockchain companies in the country has experienced a 32% annual surge by the end of 2019. Meanwhile, Israeli regulated Forex brokers are facing less leverage on trading and ISA wants to impose loss statistics.

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