TASE Clearing House
|Function of the Clearing House|
|What is the TASE Clearing House?|
The TASE Clearing House is a subsidiary of the Tel Aviv Stock Exchange. The Clearing House provides the following clearing and custody services:
- Clearing transactions in securities traded on the TASE and in the MTS system - a European trading system in which, among other things, government bonds of the State of Israel are traded.
- Clearing off-Exchange transactions and transfers to custody.
- Clearing of creation and redemptions of mutual find units
- Custody services that include registration of the securities traded on the TASE in the credit of Clearing House members
- Clearing of the rights attached to the securities and to mutual fund units registered to the credit of Clearing House members, including in respect of interest payments, redemption, dividend, etc.
- Clearing of transfer orders of securities traded simultaneously in Israel and the United States through its account at DTCC, which is the central clearing house in the United States that provides clearing and custody services for securities in the United States
- Clearing of transfer orders of securities traded simultaneously in Israel and Europe and deposited in the Clearing House's account at Euroclear Bank
Additional information about the TASE Clearing House >
|What services are provided by the Stock Exchange Clearing House?|
|Among the services that the Stock Exchange Clearing House provides to the capital market, by means of the Clearing House members, are the following: |
- The clearing of transactions on and off the Exchange and on the MTS Israel system
- Securities custody services
- CCP for trading transactions and MTS transactions
- Clearing Repo transactions
- Clearing mutual funds
- Clearing and payment services for securities not listed for trading
- Clearing services for dual-listed securities
- Back-up facility
- NLT securities – providing custody and clearing services for securities issued to institutional investors and that are not listed for trading on the Exchange
- Handling the exercising of rights attached to securities
- Operating the Government bonds lending facility on behalf of the Ministry of Finance
- Providing operating services for the collateral system of the Bank of Israel (ICS)
- Operating a borrowing and lending facility in all types of securities traded on TASE
|Where can the By-Laws of the Clearing House be found?|
|Who can be a member of the Stock Exchange Clearing House?|
Chapter Two in Part One of the By-Laws defines who can be a member of the Clearing House.
Part One of the By-Laws >
|Where can a list of Clearing House members be found? |
|Where can information be found regarding the fees charged by the Clearing House?|
Information regarding clearing fees that the Clearing House charges Clearing House/Exchange members can be viewed on the price list, which can be found on the website:
Publication of information and price list >
|Where can the dates when clearing does not take place be found? |
| ||Mutual Investment Trust funds|
|Can mutual fund units be redeemed short?|
|Where can information be found regarding management, representation and clearing of mutual funds?|
|How are orders for the creation/redemption of mutual fund units to be submitted? |
Orders for the creation and redemption of mutual fund units are to be effected by the giving of an instruction to the Exchange member with whom the investment account is maintained. Orders for the creation or redemption of units can be given on any Exchange trading day up to the designated hour set by the fund manager. The clearing of an order is carried out on the following business day (T+1).
Detailed information can be found in Chapter Twelve in Part Two of the By-Laws of the Clearing House >
|How is the clearing of creation/redemption orders carried out in the case of overseas funds?|
In the case of overseas funds, creation and redemption orders can be submitted on Mondays-Thursdays. The clearing of the orders is carried on the following business day (T+1) with last known unit/redemption price. At the following clearing day (T+2) the creation and redemption orders will be cleared according to the redemption/unit price as revaluated by the representative member transmission to TASE systems.
Orders to create and orders to redeem of a fund that are cleared in foreign currency, which the Clearing House received on any day up to the designated hour, shall be cleared by the Clearing House in the first clearing round on the first business day on which the Bank of Israel performs foreign currency clearing after the day on which the orders to create or orders to redeem. The Clearing House preform clearing of creation and redemption orders in US dollars only.
|Where can information regarding prices, exposure profile, management fees, yield, investment policy, etc. of mutual funds be obtained? |
|Requests for information and explanations regarding prices, exposure profile, management fees, yield, investment policy, etc. should be addressed to the fund manager. |
| ||Securities that are not listed and share and bond certificates|
|Where can information be obtained regarding historical securities or printed share/bond certificates?|
|Inquiries regarding historical securities (bearer or registered certificates) or regarding such securities that are no longer listed for trade should be addressed to the bank/broker with whom the account is maintained. Inquiries may also be addressed to the company’s corporate secretary and, in the event of the company details not being known, inquiries may be addressed to the Registrar of Companies. |
|What are the rules regarding securities that have ceased to be traded and the client pays custody fees to the bank?|
- Currently, all members of the Clearing House (banks and brokers) are charged “account management fees” for holding securities of their clients at the Clearing House. In order for a Stock Exchange Clearing House Member (a bank or a broker) not to pay the account management fees to the Clearing House, it must withdraw the security which is currently registered in the name of the nominee company and make a request to the company that the security be registered in the name of the final client. Currently, in accordance with the By-Laws, the Clearing House does not permit such a withdrawal from the nominee company and registration of the security in the name of the client, except in exceptional instances, such as when a company is delisted.
- In the case of a company that has been delisted from the Exchange, there are situations when neither a company nor a legal entity can issue a new certificate in the name of the client on behalf of the company.
Nominee companies propose to the client that it signs a waiver form in respect of the securities; after the client has signed the waiver form, the securities are transferred to a special account at a bank where the rights attaching to the securities at any given moment are retained. If at some future time the company publishes a notice regarding any payment in respect of those securities, the bank will contact the client to inquire whether it wishes to receive the payments being distributed, and provided that the client pays the bank the cost of the account management fees for the period that the bank has been holding the securities. If the client refuses to pay the account management fees, the bank will not transfer any payment to it.
|Can a security be withdrawn from the Clearing House and be registered in the name of the client?|
|The Clearing House By-Laws prescribe that a client does not have the right to withdraw shares from the securities registered to his credit with a member and to have them registered in his name in the issuer's register of shareholders. The exceptions to the aforesaid are specified in section 5 of Chapter Three in Part Two of the By-Laws. |
| ||Clearing for dual-listed companies|
|What services are provided for dual-listed companies by means of the Clearing House account with the DTC?|
|Where can a list be viewed of all the dual-listed shares that are transferred for trade in Israel by means of the Clearing House account with the DTC?|
|How much time does the process take for transferring the shares from Israel to the United States and vice versa by means of the Clearing House account with the DTC?|
|The process for transferring shares from Israel to the United States and vice versa by means of the Clearing House account with the DTC usually takes two clearing days. |
|How can shares be transferred from the US to Israel and vice versa, when shares cannot be transferred by means of the Clearing House account with the DTC, due to an insufficient quantity at the Clearing House account? How long the process takes?|
|In the case of a share that is traded in the United States and in Israel and which cannot be transferred by means of the Clearing House account with the DTC and is not an ADR, the transfer will be effected by means of a physical withdrawal of the certificate from the United States/Israel and converting the certificate through the company into an Israeli/US certificate, respectively. |
The process for transferring shares from Israel to the United States and vice versa other than by means of the Clearing House account with the DTC usually takes several weeks and depends on the parties involved in the process (the nominee company, the company and the Transfer Agent in the United States).
| ||Information regarding holders of securities|
|How can information be obtained as to how the holding of a certain security is distributed? |
|Information regarding balances of a security held by Clearing House members is not publicly available information and can thus not be given to persons requesting such information. |
|How is the registration of an investor’s holding of securities managed? |