The Derivatives Clearing House is a subsidiary of the TASE, which issues the derivatives. The Clearing House was established together with the derivatives market, in 1993, and is responsible for clearing derivatives traded on the TASE, and for the exercise of the derivatives, according to their terms. The Derivatives Clearing House acts as a Central Counterparty (CCP) in derivatives trading. It thereby assumes the risk that one of the parties may not complete its part of the transaction, similar to the TASE Clearing House.

In this capacity, the Derivatives Clearing House collects collateral from Clearing House members and monitors members in real time through the Online Collateral System. Calculation of collateral amounts is based on the principles of the SPAN method, developed in 1988 at the CME (Chicago Mercantile Exchange), a leading derivatives exchange both in the United States and globally. In addition to the current collateral, members are also required to deposit collateral in the Risk Fund, which serves as an additional safety cushion. As of November 2005, the volume of the Risk Fund is over NIS 1.25 billion.