THE TEL-AVIV STOCK EXCHANGE NOMINEE COMPANY
The Tel Aviv Stock Exchange (TASE) Nominee Company was established in January 2018 as part of the TASE Group.
In 2018, the TASE Nominee Company covers approximately 25% of all listed companies, including Israel’s leading enterprises. In Addition, all ETFs traded on TASE are enrolled to receive the nominee company’s services.
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 revolutionized pricing in the capital market, which has led to greater competition and a resultant dramatic drop in costs for issuers.
The TASE Nominee Company continues to enhance efficiency and innovation. In the second quarter of 2019, it will launch a dedicated digital portal, which will enable the secure digital upload of documents between it and its customers.
The portal will obviate the need to transfer original documents via courier, will expedite the process of transferring securities and registering them with the TASE Nominee Company and the TASE Clearing House and will lower costs for issuers.
In addition, the portal will enable 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 NOMINEE COMPANY’S ADVANTAGES
- Cheaper 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” 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 using a computerized system.
In addition with the launch of its portal, the TASE Nominee Company will obviate the need to transfer original documents via courier.
- Improved control processes - in all matters relating to the records of the issuing companies’ capital, due to the ability to implement automated controls between the capital records of the nominee company and TASE’s core system.
- Transparency and supervision - TASE Nominee Company is the only nominee company regulated by the Israel Securities Authority and its fees are publicly disclosed in TASE’s published fee schedule.
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 issuers.
THE NOMINEE COMPANY'S SPHERES OF OPERATION
The majority of the TASE Nominee Company's business is in two main 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 the 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 each day due to a large variety of types of transactions, including: deposit of an issuance, deposit of securities that are 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 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.
HOW DOES ONE GO ABOUT REGISTERING FOR THE TASE NOMINEE COMPANY'S DIGITAL SERVICES?
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 fee schedule.
- 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.