Regulation of the primary securities market and the strict ongoing disclosure regime that companies that have issued securities to the public must comply with.

Supervision of the Tel Aviv Stock Exchange including approval of the TASE by-laws and conducting stock watch operations on trading activity. The ISA's duties include the investigation and prosecution of stock manipulation, fraud, inside trading and other securities violations.

Regulation and supervision of the supply of investment advice and portfolio management to the public: the ISA is responsible for the licensing process and supervision of advisors and managers conduct of business including through ongoing oversight activities such as regulatory audits and investigating customer complaints.

Regulation and oversight of the mutual fund industry, approving fund managers, supervising fund policy, fee taking, promotional material as well as monitoring market developments and customer activity.

The strong level of investor protection in Israel and the sophistication of the local financial markets has been recognised in the high rankings granted to Israel by bodies such as the World Bank and the World Economic Forum.

The ISA has singled out continuing harmonization with world markets as one of its most important goals. The ISA is proud to take part in IOSCO's very important work and plays an active role on a number of international fronts, including in connection with the invitation to Israel from the OECD to take part in membership talks.

The ISA drafts and promotes all laws and regulations governing Israel's securities market and related services. The ISA's primary legislative responsibility is investor protection and it provides investors with the legal foundation that is the cornerstone of investor confidence in the market: transparency, accountability and credibility.

Overview
Founded in 1953, the Tel Aviv Stock Exchange is the heart of Israel's dynamic burgeoning economy. Combining the advantages of mature sophisticated markets with the opportunities characteristic of emerging markets, the TASE offers a vast range of exciting possibilities to the global investment community.

Regulated by the Israel Securities Authority, the TASE provides a highly advanced platform for trading in shares, corporate bonds, treasury bills, derivatives, index-tracking certificates and other financial products. It offers a full range of market services, including clearing and settlement, data vending services and the calculation of indices. The TASE is mutually owned by its members.

Trading, Clearing and Settlement: A Seamless One-Stop Shop
An integrated, fully electronic, order-driven trading system serves the equity, debt and derivatives markets simultaneously. The central order book system is based on international rules. All trades are cleared and settled by the TASE Clearing House (wholly owned by the TASE), which serves as the central counterparty to all transactions. Paperless straight through processing technologies enable efficient clearing and settlement.

• 60 companies cross-listed with foreign exchanges: Companies traded in the US national markets and in the London Main Market's Primary Listings cross-list their shares on the TASE. The regulatory filings submitted abroad are recognized by the ISA for the purpose of local disclosure requirements. Recently (January 2008) Israel expanded its international issuing market by signing a mutual recognition agreement with the French AMF (Autorité des Marchés Financiers).

• Approximately 25% of the trading volume of the Israeli capital market is generated by foreign investors

• Reporting according to IFRS, filing the reports using XBRL - All companies traded on the TASE must report according to International Financial Reporting Standards, filing their reports using XBRL (Extensible Business Reporting Language), which render the data disclosed in financial reports readily translatable into English.

Ownership: TASE Members, supervised by the Bank of Israel or TASE
TASE members (13 banks, 14 investment houses) serve the community of local and international investors in Israel's growing market. Capital and liquidity requirements are enforced by the TASE to promote market stability and investor protection.