Asset servicing - Israel

13.08.2020

Market rules provide that entitlement for both interest and dividends from Israeli securities are recognised according to settled positions on the record date. However, a market practice has developed between certain (principally foreign) counterparties that provides for entitlement on trade date. Therefore, a market claims process may be required after settlement. Ex-date is record date.

Income collection

Bonds

Service offeredRemarks
Notification to customers

Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal, CreationOnline and Xact File Transfer.  

See Section 8 “Asset servicing” of the Customer Handbook.  

See Connectivity manuals on the Clearstream website.

Payment of proceeds

Proceeds in local (ILS) or foreign currency will be paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. 

Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value.  

The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR.

For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook.

Equities

Service offeredRemarks
Notification to customers

Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal, CreationOnline and Xact File Transfer.

See Section 8 “Asset servicing” of the Customer Handbook.

See Connectivity manuals on the Clearstream website.

Payment of proceeds

Dividend proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. 

Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value.  

The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR. 

Proceeds will be paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which proceeds are received.

Dividends are usually announced 14 days before record date; payment date is usually 14 days after record date. 

For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook.

Corporate actions

Service offeredRemarks
Notification to customers

Standard reporting.

No specific deviations from the standard reporting provided by CBL apply to the Israeli market.

Instruction to CBL

CBL collects and processes customer instructions for events, such as, but not limited to, exchange offers, purchase offers, bonus issues, rights issues etc.

Entitlement to corporate actions is determined by settled position on record date.

Sale and purchase of rights

Please refer to Sale and Purchase of Rights.

The standard exercise period for rights is 14-21 days. The standard time for payment and receipt of securities is 2-4 days. Rights are tradable two business days before the exercise/expiry date. If a custodian’s customer buys rights on the trade date and wants to exercise them, it must submit instructions to exercise the rights together with the buy instruction; otherwise, the rights will expire.

Generally, according to TASE-CH by-laws, the default action by local subcustodians is, if no other instructions are received from the holder, to let the rights lapse.

Note: It is not currently possible to trade rights on the Israeli market via Clearstream Banking or its local subcustodian.

The concept of odd lots does not exist in the Israeli market; rights are issued on the full entitled position.

Proxy Voting procedures

Proxy voting services are available in CBL for this market.

Every shareholder is entitled to vote at annual or extraordinary general meetings. No restrictions are imposed on foreign shareholders. CBL will provide its customers with a translated agenda of meetings after the information is published in the TASE Bulletin.

Customers that want to exercise proxy voting should observe the following procedure:

  1. The account holder of the shares must sign a power of attorney in favour of the CBL customer. The CBL customer will also provide CBL with a signed power of attorney.
  2. The power of attorney will be sent to ADP Broadridge.

For details on the proxy voting services offered by CBL, please refer to the Customer Handbook and, for the market specific practices, please refer to the Market Profile.

Proxy voting fees

Out of pocket expenses, such as translation costs and notary costs, will be charged to customers in addition to the standard proxy voting fees.

Entitlement compensation rules

Please refer to the Entitlement Compensation Rules - Israel.