TASE Clearing House - Central Counterparty (CCP)
By virtue of being the CCP, the TASE Clearing House ("TASECH") is responsible for ensuring the implementation of the clearing instructions and the following clearing operations:
Transactions in securities carried out on the TASE:
- Daily trade data (On Exchange trading data as of last trading day)
Transactions carried out in the European MTS system -
Daily Clearing & settlement data (The data refer to all transactions that cleared in the first clearing round on the clearing day)
Transfers to a custodian (TASE) – following trading transactions on the TASE (custodian transactions) - Daily Clearing & settlement data (The data refer to all transactions that cleared in the first clearing round on the clearing day)
Refund of lending transactions made in the TASECH's lending platform
Transactions for which TASECH does not act as CCP:
- Off-exchange transactions.
- Transfers (transfer of a client portfolio from one TASECH member to another TASECH member)
- Transfers to a trustee for custody that are follow-up actions to off-exchange transactions (custodian off-exchange transactions)
- Additional transactions that are not TASE or MTS transactions
Pending Transactions
In cases where a TASECH member has a shortage of securities inventory required to complete a transaction, the TASECH allows the TASECH member to complete the said inventory at a later date and subject to the conditions set forth in the By-Laws. In this case, the transaction will be defined as a pending transaction and the TASECH member will be charged with collateral in cash for the price risk in the transaction.
A transaction that is not cleared in the
first multilateral settlement windows on T+1, will become a pending transaction, and will be cleared in subsequent multilateral settlement windows, until the closing of the first multilateral settlement window on the fourth trading day after the transaction (T+4).
In cases where securities are traded both in Tel Aviv and abroad, and are cleared both in Israel at TASECH and at a foreign clearing house, the transaction will be cleared in the following settlement windows, and until the closing of the first multilateral settlement window on the eighth trading day (T+8).
Cash Collateral
When a transaction becomes a pending transaction, the TASECH freezes the TASECH member's (the seller) collateral against transactions in which he did not have sufficient inventory in his account to clear them.
The frozen capital amounts are calculated according to the opening rate of the security on the same business day, multiplied by the balance for net delivery (as defined in the By-Laws) and by a security coefficient as specified in Chapter E of Part B of the By-Laws.
Every business day, and as long as the member has pending transactions on the security, the TASECH calculates the amount of collateral and charges / credits the difference from/to the selling member.
Failed Transaction
In case the TASECH member has not completed their part of the pending transaction on the required date, the TASECH house will complete it in the member's place by purchasing the security on the market using the TASECH's member's means (buy-in procedure) and transferring it to the seller, or by monetary compensation to the seller from the member's means.
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