Reporting of activities in the foreign exchange derivatives market and the makam and short-term government bond markets: Distribution of draft for comments.

19.01.2011
 
Reporting of activities in the foreign exchange derivatives market and the makam and short-term government bond markets: Distribution of draft for comments.
 
During recent months there has been a marked increase in the volume of transactions in foreign exchange derivatives and makam. In order to improve its ability to analyze transactions and trends in these instruments, as part of its monitoring of developments in the foreign exchange market, the Bank of Israel will issue an Order imposing a reporting obligation on Israeli residents and nonresidents who perform transactions in foreign exchange swaps and forwards of more than $10 million in one day. The required report will include details of the transactions and their balance of holdings of such assets. Additionally, nonresidents who perform transactions in makam and short-term government bonds of more than NIS 10 million in one day will be required to report details of the transactions and their balance of holdings of such assets.
The Bank of Israel today distributed the draft Order to banks, financial intermediaries and others for comments, to be received by January 26, 2011. The requirements will become effective shortly after comments are received.
The full draft Order is published on the Bank of Israel’s website.
The purpose of the measure announced today is to improve the Bank's ability to achieve the goals of its monetary and foreign exchange policies.
 
For the full draft - Click here
For the letter accompanying the order - Click here