Israel Securities Authority MAGNA Electronic filing

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Israel Securities Authority MAGNA Electronic
filing

Natan Herscovitz, CIO December 2004
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Main computerization projects

• Internet site www.isa.gov.il
• Enforcement system investigations and
  intelligence
• Stock Exchange activity monitoring
• GroupWare system
• Electronic filing system

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Electronic Filing Project

• Establish a computerized system to receive and
  distribute, via the Internet, all reports
  required from the bodies supervised by the
  Securities Authority.
• Main goal to enhance investors confidence and
  encourage capital market investments

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Filing System Goals

• Prompt report publication, free of delays
• Equal publication information is accessible to
  the general public
• The electronic report is the legally original
  document, not only a representation
• Establish an archive system that stores documents
  indefinitely
• Enable complete data retrieval according to a
  large variety of criteria
• Enable queries and reports a unique,
  sophisticated feature

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Filing System Goals

• Receive non-public reports for internal ISA use
• Fully automatic distribution to Tel- Aviv Stock
  Exchange and various commercial information
  distributors
• Uniform and standardized reporting
• Very significant cost reduction for companies

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Architecture
Data Security
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General project characteristics

• Large amount of data

financial reports
immediate reports
transactions with controlling shareholders
Prospectuses
private placements
acquisitions
private placements
Change of holdings
Tender offers

• Forms for companies, investment advisors and
  portfolio managers
• In total, hundreds of thousands of report pages
  per year

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General project characteristics

• Thousands of reporting bodies, throughout Israel,
  with several persons in each appointed to fill
  reports
• Short schedule approximately one year to set up
  the system from kickoff to full production
• Extensive integration and tutoring project
• Service offices for assistance in reporting
• Help Desk providing user support by phone

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Project Characteristics Software Development

• Some of the worlds most advanced technologies,
  never used in any computer system before
• Complex interfaces to internal and external
  systems
• Advanced procedures
• Individually tailored report forms reporting
  body identification and data downloads
• Report type identification
• Report fields Identification
• Sent reports are encoded and signed
• Completeness testing
• Service offices

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Project Characteristics Hardware and
Communications

• Availability and reliability
• 99.95 up time
• No Single Point Of Failure
• Computer room organization
• DRP Disaster Recovery Plan
• Alternative site in case of crash or disaster,
  located in another city
• Unique control management system for hardware,
  software and business process control

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Project Characteristics Required Data Security

• System must provide
• Identification
• Authentication
• Non-Repudiation
• Non-Disclosure
• Protection against intrusion
• Protection from viruses and vandals
• Protection of internal ISA information systems
• Interface protection

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Project Characteristics Data Security solutions

• Solutions used to achieve the above requirements
• PKI (Public Key Infrastructure) Technologies
• Use of external and independent Certification
  Authority, approved by law
• Use of USB Token as a cryptographic device
• Use of GAP technology for physical separation as
  part of the PKI authentication process, including
  content inspection
• Software security
• Firewalls by various vendors
• Intrusion detection packages
• Anti-Virus software
• Security control and management system

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Electronic Filing Project

• Getting underway
• Registration
• Integration
• Fully operational since Nov. 16th 2003
• Further stages
• Funds and investment counsel
• Red flags