Israeli Capital Market Nears NIS 3 Trillion, Needs Regulatory Update
Translated & summarized from Bizportal by baba
Spi Singer, Chairman of the Israel Securities Authority, announced that the Israeli capital market is approaching NIS 3 trillion in value and requires updated regulations. He noted significant growth in market capitalization, trading turnover, bond markets, and mutual fund assets, driven by both domestic and international investors. Singer emphasized the need for legislative updates to regulate brokers, promote securitization, and support a unified investment account, stating that further development hinges on government and Knesset action to align Israeli regulations with global standards.
The story in 6 lines · by baba
- Israeli capital market value nears NIS 3 trillion, requiring regulatory updates, according to Spi Singer.
- Daily trading turnover reached approximately NIS 5.5 billion, with bond and mutual fund markets also growing.
- Foreign investor holdings on the Tel Aviv Stock Exchange reached $154 billion, with significant Friday trading activity.
- Singer called for updated legislation to regulate brokers and promote securitization for broader financing options.
- The development of a unified investment account and reforms to commission structures were also discussed.
- The stock exchange's shift to Friday trading has significantly boosted foreign activity and overall turnover.
The Israeli capital market is growing at a pace that necessitates an update to its regulations and financial infrastructure, according to Spi Singer, Chairman of the Israel Securities Authority. Speaking at the annual conference of the Association of Investment Houses in Israel, Singer stated that the market capitalization of companies on the Tel Aviv Stock Exchange is approaching NIS 3 trillion. Daily trading turnover has reached approximately NIS 5.5 billion, the bond market stands at around NIS 750 billion, and mutual fund assets are valued between NIS 850 and 860 billion.
Singer highlighted these figures as part of a broader transformation in the local market, noting the addition of hundreds of thousands of private investors in recent years, alongside increased participation from international entities. He also mentioned interest from American technology companies considering listing in Israel. Data from recent months supports this growth trend, with mutual fund assets reaching about NIS 853 billion by early September, up from approximately NIS 757 billion at the end of 2025, largely driven by money market funds and passive products.
Foreign investor activity has also surged. By the end of the second quarter of 2026, foreign residents' holdings on the stock exchange reached about $154 billion, with their share of Friday trading turnover hitting 41%. Singer pointed to the need for new legislation to regulate the activities of brokers, arguing that the current framework in Israel lags behind developed markets. He emphasized the importance of clear rules, investor protections, and broad competition among financial institutions.
Additionally, Singer called for the advancement of a regulated securitization market, which would allow future cash flows to be transformed into tradable securities, thereby expanding financing options for companies and projects and offering new investment avenues. He also addressed the Ministry of Finance's promotion of a unified investment account, designed to simplify the management of various investment products under a single framework with consistent tax rules and easier comparison of costs and returns. This initiative aligns with ongoing reforms, including changes to securities commission structures.
Singer linked the capital market's development to the economy's financing needs, citing large-scale projects in transportation, energy, and regional development requiring substantial long-term capital. He also positively noted the stock exchange's shift to trading from Monday to Friday, which has led to a sharp increase in foreign activity and trading volumes on Fridays. A study by the Israel Securities Authority found that the average daily turnover on Fridays reached approximately NIS 2.6 billion, and foreign participation rose from 15.3% to 38.2% after the change.
Singer concluded that the market's rapid growth has made it a central component of the economy's financing and public savings. He stated that the next phase depends on the government and Knesset completing the legislation needed to align the local market with the rules of major global financial centers.