Hauser: Over-regulation not to blame for waning of TASE

Securities Authority chairman Shmuel Hauser blames uncertainty in international markets, the departure of foreign investors, and the wave of debt settlements.

The decline in the volume of trade on the Tel Aviv Stock Exchange (TASE) and the waning of the market is not due to over-regulation, Israel Securities Authority chairman Prof. Shmuel Hauser told an Israel Bar Association conference on capital market enforcement. He said that the causes of the crisis on the TASE were completely different, such as the departure of foreign investors, and uncertainty in foreign markets.

Hauser made his remarks on uncertainty in foreign markets even as Wall Street indices are up 30% since October 2011, compared with a 3.1% gain by the Tel Aviv 25 Index.

Hauser said that regulation actually supports a long-term stable capital market. "Regulation, which guarantees the existence of a fair, efficient, and sophisticated capital market, winning the trust of investors, is a critical factor for the functioning of the capital market and attracting foreign investors. You cannot blame the fall in turnover on regulation. The opposite is true."

Hauser attributed the fall in turnover to uncertainty in markets and Israel's upgrade from an emerging market to a developed market by MSCI, as well as taxation elements, the departure of foreign investors from the TASE, and the wave of debt settlements.

Nonetheless, Hauser said, "We should not ignore the fact that regulation is liable to create costs for regulated bodies in the capital market, and these costs should be taken into account when regulations are formulated." He added that the Securities Authority maintains regular contact with regulated entities and the associations that represent them. "Our door is open to comments and responses on every topic," he said.

Published by Globes [online], Israel business news - - on March 20, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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