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TASE Clearing House Additional Services

In addition to being a Central Counter Party (CCP) and Central Security Depository (CSD), The TASE Clearing House ("TASECH") provides additional services such as: clearing services for securities not listed for trading on the Stock Exchange (NLT), operating services for the Ministry of Finance Lending Facility of government bonds, and provides operational services to the Bank of Israel's Intraday Credit System (ICS), in order to provide liquidity  for the Israeli banking system.

Clearing Services for Securities Not Listed for Trading on the Exchange (NLT)

The NLT services enable the holders of securities to receive custody services, including current payments such as interest, redemption and dividend payments, from the issuing company to the holders of the securities through the members of the Clearing House. In addition, the Clearing House enables the transfer of securities between investors in the form of OTC transactions.

Ministry of Finance Government Bond Lending Facility Management

As part of the reform in the capital market, the Ministry of Finance and  the TASECH launched a lending pool that enables primary market makers defined by the Ministry of Finance, to lend Government bonds. As part of the lending transaction, the Government bond lender requests TASE Clearing House to execute the loan. In accordance with the conditions stipulated in the lending agreement between the TASECH and the Ministry of Finance, the Clearing House is responsible for the operating services for the Ministry of Finance.

Operation of Bank of Israel's Intraday Credit System (ICS)

As part of RTGS system services the Bank of Israel allocates participants a credit line contrary to collateral they are required to deposit. For each participant (a member or an NCHM (Non Clearing House Member) there is a securities inventory account that  was opened by the request of the Bank of Israel.)
 
The ICS system is operated by the TASECH in accordance with the  agreement signed between the TASECH and the Bank of Israel. System operation is performed using SWIFT (without manual intervention).
 
The services provided by the system include:
  • Execute deposits and withdrawals from the collateral account
  • Revaluation of collateral - MTM (Mark to Market)
  • Transferring of reports and notices to the Bank of Israel

More about TASECH