The Dual Listing arrangement, which came into effect in 2000, allows companies whose securities are listed for trading on certain foreign exchanges to register them for trading on the Tel Aviv Stock exchange as well, based on their reports under foreign law. The arrangement is based on the understanding that globalization processes today lead companies to choose more than one trading venue, alongside competition among exchanges for large and international companies.
Following is a list of approved stock exchanges to date:
· New York Stock Exchange;
· London Stock Exchange - Premium and High Growth Segment;
· Toronto Stock Exchange – Main Board;
· Singapore Stock Exchange – Main Board (mutual recognition);
· Hong Kong Stock Exchange – Main Board.
The Dual Listing arrangement exempts companies listed for trade on these exchanges and on the Tel Aviv Stock Exchange from reporting requirements pursuant to the Israeli Securities Law and allows them to continue reporting according to the foreign law that applies to them (i.e. foreign security laws and regulations). In these cases, the ISA is relying on the foreign regulator's supervision in those respective countries.
The International Affairs and Business Development Department is working to establish similar mutual recognition on other leading exchanges, which will strengthen the openness of the Israeli capital market to the world.
To the complete guide for Dual Companies