- Briefing Room
- Consumer Engagement
- Commerce 3.0
The Exchange-traded notes (ETN) market has developed rapidly in Israel over the past few years, as has the market for exchange-traded funds abroad. As of the middle of 2012 more than 300 ETN series tracking bonds and share price indices trade on the Tel Aviv Stock Exchange (TASE). The value of the public float in these instruments exceeds US $ 12.5 billion.
At its 28/6/2012 meeting, the TASE Board of Directors approved additional regulations, designed to better address investor needs, while maintaining fair and orderly trade.
Key additions to the Regulations:
1. Criteria for indices eligible to serve as ETN underlying assets:
2. Traded Depository Notes
From this day forward the listing rules governing ETNs will apply to exchange-traded depository notes as well. Until now these instruments were listed under the listing rules set for corporate bonds.
Leveraged without rebalancing ETNs
At the same board meeting, the Board of Directors set restrictions on the maximum leverage used in leveraged “without rebalancing” ETNs, as follows:
Within the framework of the revised regulations, the TASE Board will be authorized to suspend trading or delist ETNs, should orderly trade in either an ETN or an underlying index be disrupted. In such cases the ETN issuer will be required to exercise early redemption of the ETN within 30 days.
Leveraged Rebalanced ETNs
It is anticipated that proposals enabling monthly rebalancing of leveraged ETNs on the TA-25 index and setting rules for the approval of daily rebalanced leveraged ETNs on foreign indices will be brought before the Board in the near future.