The Tel Aviv Stock Exchange (TASE) has made Euroclear Bank the first financial institution to become a custodial member to its exchange, enabling direct settlement of domestic Israeli securities.
The custodial membership will allow Euroclear to access directly to TASE without engaging in any trading activity, and provide settlement and asset services through a direct account with the Israeli central securities depository (CSD), operated by Citibank.
“By joining TASE, foreign investors will be able to hold Israeli securities via Euroclear direct account in TASE. It is one of TASE’s strategic goals to enhance membership types, increase competition, and expand foreign investors’ involvement in trading on TASE,” said Orly Grinfeld, executive vice president and head of clearing, TASE.
With Euroclear as a custodial member of the exchange, international investors can benefit from a higher level of asset protection, increased market proximity, and faster access to securities.
“Asset protection and efficiency are key factors for international investors when they make investments in domestic capital markets,” added Frank Slagmolen, deputy head of capital markets, Euroclear.
“With Euroclear Bank becoming the first participant with direct access to the Tel Aviv Stock Exchange’s CSD, we are pleased to make settling in Israeli instruments safer and easier for our global client franchise, further strengthening our global network.”