All non-Israeli firms who deal in the Israeli Shekel derivatives have reporting obligations to the Bank of Israel on top of their standard jurisdictional reporting requirements. All non-Israeli firms who report above the threshold are required to report all OTC Derivatives on FX and rates which reference the Shekel.
The reporting threshold is equated to the daily value of Shekel trades executed, on a rolling period of one year (being 250 days in a year). Where the average daily value of Shekel trades executed is in excess of USD15m brokers are required to report. The reporting requirement will continue until another year has passed where the daily value of Shekel trades has not met the threshold.
The following is a list of reportable instruments where they are Shekel based, involve Shekels or reference a Shekel yield or interest rate:
- FX spot
- FX forwards
- FX swaps
- FX CFDs/spreadbets
- Inflation swaps
- Forward Rate Agreements (FRAs)
- Interest Rate Swaps (IRSs)
- Coupon swaps
- Basis swaps
- Cross-currency swaps
- FX options (both deliverable and non-deliverable)
- Inflation options
- Rates options, caps and floors
Shekel reporting requirements are mandated under chapter 39(b) of the bank of Israel Law 5770-2010 and came into effect on 1 January 2017.