Securities Lending Pool

​About

The TASE Clearing House operates a central securities lending pool using an automated platform that brings together lenders (parties holding an inventory of securities that are free of pledges and available for lending) and borrowers (parties looking to sell or cover short balances with securities that are not in their possession) in an efficient, straight-forward and technologically advanced manner.

Lending transaction is executed through  the lending platform, the Clearing House transfers the requested security from the lender to the borrower, obtains appropriate collateral from the borrower, administers corporate actions in the life of the borrowed security during the lending period and returns the security from the borrower to the lender at the end of the period.

The TASE Clearing House serves as a central counter party (CCP) for the lending transactions that are executed through  the lending pool, guaranteeing the return of the security to the lender at the end of the lending period, even if the borrower fails to meet its obligations.

The platform follows generally accepted global practices.

Advantages of the Platform

  • A secure platform using Blockchain technology
  • Facilitates a technology-based, automated and swift transacting between lenders and borrowers
  • Full transparency by real-time publication of the securities available for lending (“lending book”) and of information on the lending transactions established.
  • Comprehensive management of the collaterals required for the borrowing
  • The  lending platform oversees and operates the full life cycle of the lending transaction

Advantages for the Capital Market

  • The TASE Clearing House serves as a central counter party (CCP), assuming the risk inherent in the lending transaction
  • The TASE Clearing House oversees the execution and operation of the transactions 
  • Compatible with generally accepted global practices
  • Significantly cost-effective 
  • A transparent and advanced platform
  • Supports expansion of the lending market 
  • The TASE Clearing House is the exclusive administrator of the lending pool

Advantages for the Lenders 

Source of passive income from securities sitting in the investor’s securities account, Elimination of the risk involved in transactions (The TASE Clearing House serves as a central counter party (CCP)), Guaranteed return of the securities at the predetermined date, Payment of daily loan fee, Full operation of corporate actions on loaned transaction 

Advantages for the Borrowers

Access to a broad inventory of securities available for lending, No brokerage is required, Solution for short positions and/or  pending transactions, Cost-effective 

How does it work?

The central lending pool platform is an automated and secure platform in which lenders offer securities for borrowing through members of the TASE Clearing House (banks and investment houses)

 

  • Parties looking to lend securities will publish them in the “lending book”
  • The lending book will contain the following information - name of the security, quantity of the security, proposed lending fees, type of lending and lending period
  • Parties looking to borrow will refer to the lending book and accept one of the offers
  • The lending pool platform will establish the transaction
  • The TASE Clearing House will transfer the security from the lender to the borrower and will operate the lending transaction from beginning to end

 

For additional information

CcpSecurities@tase.co.il