TASE Clearing House - Central Securities Depository (CSD)
The balance of securities in the TASECH is for registration purposes only, because securities custody actions in the Clearing House is a recorded action, without the actual physical transfer of securities certificates between the buyer and the seller, and without the need to make changes in the Company's books.
Each member of the TASECH has inventory accounts - accounts in which the balances of his securities and those of his clients are held. For this purpose, at least two separate sub-accounts are opened:
- Inventory account for the member's Nostro activities.
- Inventory account for the member's clients' activity (more than one account can be opened for customer activity).
TASE Clearing House ("TASECH") provides several custody services. TASECH custody services include: payment services for corporate actions, such as: dividend payments, interest, maturity/ partial / compulsory redemption, merger between companies, consolidation, capital reduction, allocation of rights, compensation, etc. from the issuing company to the holders of the securities.
In addition, the TASECH provides services for the operations of the listed companies to the holders of the securities and vice versa, such as the exercise of options, conversion of bonds, and exercise of rights. These custody securities services are provided by TASECH through the Nominee Companies and TASECH members.
Securities issued in Israel with the intent of registering them with the TASECH are allocated in the name of a Nominee Company. The Nominee Company deposits the securities that were assigned in its name in the TASECH to the credit of the TASECH members. The names of the clients who are entitled to the securities are registered in the TASECH members' accounts only (the TASECH does not "know" who the clients are). The books of TASECH members include the names of their clients, who are the true owners of the securities.
There are currently four active Nominee Companies:
- Bank Hapoalim Ltd. Nominee Company
- Israel Discount Bank Ltd. Nominee Company
- Mizrahi-Tefahot Bank Ltd. Nominee Company
- TASE Ltd. Nominee Company
The physical certificate or letter of assignment is kept in the safe of the Nominee Company. The TASECH is registered as an entity for which the securities are held in the Nominee Company books, and the TASECH members are registered in TASECH books.
In addition, the Bank of Israel (Israel Central Bank) acts as a Nominee Company for MAKAMs (T-Bills) while the Ministry of Finance acts as a nominee company for Israeli Government bonds.
Security registration process diagram
More about TASECH