THE TEL-AVIV STOCK EXCHANGE NOMINEE COMPANY
The Tel Aviv Stock Exchange (TASE) Nominee Company was established in January 2018 as part of TASE Group.
For the first time in Israel, the TASE Nominee Company provides digital registration services instead of physical certificates, in line with the accepted global practice.
The TASE Nominee Company provides services to the listed companies, including some of Israel’s big and leading enterprises. In Addition, all ETFs are enrolled to receive the nominee company’s services.
In 2019, The TASE Nominee Company launched a dedicated digital portal, which enables the secure digital upload of documents between it and its customers.
The portal obviates the need to transfer original documents via courier, expedites the process of transferring securities and registering them with the TASE Nominee Company and the TASE Clearing House and lowers costs for issuers.
In addition, the portal enables the TASE Nominee Company's customers to enjoy simple and secure digital tracking of transactions related to registering securities in the name of the TASE Nominee Company.
THE ADVATAGES of TASE NOMINEE COMPANY
- Lower costs - The TASE Nominee Company has significantly lowered securities registration costs for issuing companies.
- Efficiency - the work processes of the issuing companies are made more efficient due to TASE being able to provide them with a variety of “one stop shop” services: a trade listing, registration with the TASE Nominee Company and deposit with the clearing house.
- Digitization - ending the use of physical certificates and going over to digital registration.
- Improved control processes - The TASE Nominee Company conducts automated controls between the capital records that are reported by the issuing companies and by TASE’s core system.
- Transparency and supervision - TASE Nominee Company is the only nominee company regulated by the Israel Securities Authority (ISA) and its fees are publicly disclosed in TASE’s published price list.
FOR WHOM ARE THE TASE NOMINEE COMPANY'S SERVICES INTENDED?
The services provided by the TASE Nominee Company are designed for companies seeking to register their securities with the TASE Clearing House, such as: public companies, reporting companies (traded bond issuers), issuers of non-listed securities and ETF's issuers.
THE NOMINEE COMPANY'S SPHERES OF OPERATION
Registering securities in the name of the nominee company in the securities’ registry of the issuing company and their deposit with the Clearing House in favor of the Clearing House members
The TASE Nominee Company serves as trustee for TASE Clearing House in all matters pertaining to the inventory management of the securities registered with the clearing house. Inventory management is conducted in accordance with the nominee company’s undertakings toward the clearing house and the issuing company. In addition, the Nominee Company maintains a system for control and reconciliation vís a vís the Clearing House and issuers as mandated by law.
The securities’ inventory can change frequently sometimes each day due to a large variety of types of transactions, including: deposit of an issuance, deposit of securities that the beneficial owner was registered in the company’s registry, exercise of convertible securities, withdrawal of securities, all sort of redemption, purchase offers, various payments, mergers and company events that necessitate making changes in the securities’ inventory.
Company events and payments – ongoing handling of the rights relating to the securities
The TASE Nominee Company fulfills two key functions in the handing of corporate actions and payments:
Transferring payment forecast reports and coordinating with issuers prior to the payment date
Approximately two weeks prior to the payment date, or starting with the record date, the TASE Nominee Company transfers a payment forecast report to the issuer and coordinates the payment with it.
Supervising payment execution at the required time and controlling the integrity of its implementation
Issuers are required to transfer the impending payment to the TASE Nominee Company’s bank account in accordance with the timetable as specified in the TASE Clearing house by-laws.
On the payment date, the clearing house makes a withdrawal of the appropriate amounts of money from the TASE member with whom the nominee company’s bank account is held, and transfers such sums to the Clearing House members. This is done in accordance with the quantity of securities that are entitled to the payment, which are registered in favor of each such clearing house member.
At the end of the process, the TASE Clearing House members credit the beneficial holders of the relevant securities.
New Service: Digital, Secure and Easy Exercise of Stock Options
TASE Nominee Company launched in the first half of 2020, a new digital service for the exercise of employee stock options. By offering this innovative service to its customers, the Nominee Company enables them to carry out a secure digital, easy and quick way to exercise of employee stock options without drafting documents, signing them manually and having them delivered by courier.
As the service is available anytime, anywhere, it streamlines and significantly shortens the duration of the process from the trustee’s reporting of the exercise to the actual deposit of the shares in the employee’s account.
No installation and integration are required to enjoy the service but rather only a connection to a computer, a cellphone or a tablet.
The company receives real-time indication on the status of the application.
The service is being provided in cooperation with the trustees and is compatible with the process that is implemented in the United States.
How the service works
- The trustee reports the exercise of stock options.
- The company is immediately notified of the exercise by Email/text message.
- The system automatically produces digital documents based on the exercise information that was entered by the trustee.
- The company digitally approves and signs the documents.
- The application is transmitted directly to the Nominee Company.
- The TASE Nominee Company handles the exercise application and updates the company in real time after the deposit of shares is executed.
Advantages of the service
- Efficiency - A significantly shorter process of handling employees’ exercise applications.
- Reduced exposure to buy-in.
- Improved standard of services to the company's employees.
- Reducing operational risks due to typing errors.
- Saving courier costs.
- Protection of the environment (paperless).
How to join?
The process of transferring to the TASE Nominee Company’s services is easy.
- A company wishing to receive the TASE Nominee Company’s services is required to enter into an agreement with the Nominee Company and pay annual management fees according to the company’s size, capital structure and the number and type of securities it wishes to register – as specified in the TASE price list.
- In coordination with the nominee company, the issuing company will apply to make registry changes in the company’s books and to provide the nominee company with the necessary documents pursuant to the TASE Clearing House’s By-laws.
Detailed instructions regarding the MAGNA reporting and the provision of the aforementioned documents will be supplied at the time of entering into the engagement.