ISRAEL: Changes to rules on cover for Israel short selling

Thursday November 27 2014

Pursuant to changes to the Regulations on the Trading Rules of the Tel Aviv Stock Exchange, there has been an amendment to the timing of providing cover for short selling transactions on the exchange.

Pursuant to the revised Chapter 7, Section 5, of the Regulations, in relation to “technical shorts”, which are trades that are not considered to be short sales provided certain criteria are met, “If a security is sold short, then the same quantity of the sold securities shall be deposited in the client`s account with the selling member within the period of time specified below:

A. If the client is an Israel resident – within one trading day;

B. If the client is a foreign resident – within 3 trading days.”

The previous rules referred to business days rather than trading days.

Click on the above link for the revised Regulations.