TASECH for Open Mutual Funds
Open Mutual Funds
An open mutual fund as defined in the Joint Investment Trust Law -1994. The TASE Clearing House ("TASECH") clears orders to create or redeem units of open-end mutual funds from TASECH members to fund managers via fund representatives who are TASECH members. Requests for creation and instructions for redemption may be submitted to the TASECH only on trading days up to the designated time, which is the hour set by the Fund Manager for receipt of instructions from TASECH members.
The monetary clearing of fund units is carried out according to the price of the unit and according to the redemption price that was given to TASECH by the representative member.
When creating units in a fund, TASECH debits the member through which the order was submitted, and credits him with the relevant number of fund units for redemption.
Concurrently, the monetary account of TASECH member representing the Fund Manager is credited and his inventory account is debited in the number of units in the fund. Reverse action is performed at the time of redemption of units.. TASECH records the total number of units credited to the appropriate TASECH member.
Clearing of Creation/Redemption in the Mutual Fund
- Clearing of creations / redemptions in a fund settled in Israeli currency, received at TASECH by the designated time and carried out by the TASECH on the first multilateral clearing window on the first business day following the date on which the creation / redemption requests of the trading day (T+1) were received by TASECH .
- Clearing of creations / redemptions in foreign currency, received by TASECH by the designated time and carried out by TASECH in the first multilateral clearing window on the first business day on which the Bank of Israel performs clearing in foreign currency after the day on which the creation / redemption instructions were received by TASECH.
The TASECH provides payment services for company events in mutual funds, such as: dividend payments, merger events, liquidation events and consolidation of units, these events transferred from the Fund Manager to fund unit holders via the TASECH.
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