About the Product
The TASE Clearing House operates a central securities lending pool using an automated platform that brings together lenders (parties holding an inventory of securities that are free of pledges and available for lending) and borrowers (parties looking to sell or cover short balances with securities that are not in their possession) in an efficient, straight-forward and technologically advanced manner.
The TASE Clearing House serves as a central counter party (CCP) for the lending transactions that are executed through the lending pool, guaranteeing the return of the security to the lender at the end of the lending period, even if the borrower fails to meet its obligations. The platform follows generally accepted global practices.
How does it work?
Parties who want to lend securities post the value of the security, the amount of the security, the proposed lending fee allowance, the type and the lending period in the "lending book".
Parties wishing to borrow, will respond to one of the offers in the lending book. The lending pool platform will make the connection between the two offers.
The Clearing House transfers the requested security from the lender to the borrower, and will administer the loan transaction from its beginning to the end of the lending period.
Benefits and Features
- A secure platform based on Blockchain technology
- Facilitates a technology-based, automated and swift connection between lenders and borrowers
- Full transparency by real-time publication of the securities available for lending (“lending book”) and of information on established lending transactions.
- Comprehensive management of the collaterals required for the borrowing
- The lending platform oversees and operates the full life cycle of the lending transaction
Advantages for the Capital Market
- The TASE Clearing House serves as a central counter party (CCP), assuming the risk inherent in the lending transaction, and is responsible for overseeing the execution and operation of the transactions
- The system is compatible with generally accepted global practices
- Significantly cost-effective
- A transparent and advanced platform
- Supports expansion of the lending market
Advantages for lenders
A source of passive income from securities sitting in the investor's securities account
Advantages for borrowers
An access to a broad inventory of securities available for lending, no brokerage is required, solution for short positions and/or pending transactions, cost effective