Market Link Guide - Israel

07.10.2021

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect link via Citibank N.A. Tel Aviv branch to:

Tel Aviv Stock Exchange Clearing House (TASE-CH)

a. CSD Regulation (EU) No 909/2014, Article 2(29).

CSD

Custodian

Name

TASE-CH - Tel Aviv Stock Exchange Clearing House Ltd

Citibank N.A., Tel Aviv branch

FATCA GIIN

Not available

NXUTG8.00000.BR.376

LEI

213800WG3A9RJ78EGT48

E57ODZWZ7FF32TWEFA76

Country of incorporation

Israel

U.S.A.

Account type

Omnibus account

Omnibus account

Legal Account name/holder

Account holder: Citibank NA Tel Aviv branch

Citibank NA Tel Aviv branch as the participant in TASE does not hold an individually segregated account for CBL.

Securities listed on TASE  are recorded in the name of Citibank NA for customers and registered in the name of one of four “nominee companies” belonging to local banks (Bank Hapoalim Ltd; Israel Discount Bank Ltd; Mizrahi-Tefahot Bank Ltd) or Tel Aviv Stock Exchange, selected by the issuing company:

Bank Hapoalim Ltd –
The Nominees Company of Bank Hapoalim Ltd

Israel Discount Bank Ltd – Israel Discount Bank Nominees

Mizrahi-Tefahot Bank Ltd – Mizrahi Tefahot Nominees Company Ltd

Tel Aviv Stock Exchange – The Tel Aviv Stock Exchange Nominee Company

Government bonds, Makams and Treasury bills are also listed on the TASE. Government bonds with a maturity of more than 13 months are registered in the name of the Ministry of Finance (MoF), in the capacity of a nominee.

Makams and Treasury bills, both being government debt instruments with maturity of up to 13 months, are registered in the name of the Bank of Israel (BoI), in the capacity as a nominee.

Clearstream Banking S.A.


Operational arrangements

Yes/NoRemarks
Settlement free of payment

Yes

Settlement against payment

Yes

Eligible settlement currency: Israeli Shekel (ILS).

Settlement against payment in central bank money

No

Against payment settlement takes place on the cash account of Citibank NA Tel Aviv branch at the Bank of Israel. Only CSD-member banks can have an account at the local central bank.

Bridge settlement

No

Israeli domestic securities are not Bridge-eligible.

Shaping facility

No

 
Partial settlement

No

 
Settlement penalty fees

Yes

Refer to the Market Profile.
Pre-matching

Yes

Immediate release flag.

Back-to-back processing

No

 
Allegements

No

 
Automatic compensation

No

Refer to Entitlement Compensation Rules.
Registered securities

No

 
Multi Market Securities

Yes

Refer to the Multi-Market Securities Guide.
Lending and borrowing

No

 
Proxy voting

Yes

 
Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

Yes

CBL Internal.

Market restrictions

Yes

Refer to Investment Regulation.
FTT

No

 
Daily reconciliation
 

Yes

 

Moment of entry

The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.

Trades are entered via the Rezef trading platform (on-exchange) or Extranet matching platform (OTC).

Irrevocability

On-exchange trades: when the trade is confirmed.
OTC trades: when trade is matched.

Matched instructions require bilateral cancellation.

Settlement finality

Settlement finality at the TASE-CH is achieved real-time upon (cash) settlement.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 29 September 2021. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the custodian

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

The nominee concept is applicable to shares of companies listed on the local stock exchange. The local law recognises the concept of beneficial ownership, and if pursuant to the laws governing the relationship between CBL and its customers, such beneficial ownership resides with the customers, this would be recognised, and any securities (including non-listed shares and other securities) would be deemed held by CBL as a trustee (rather than as a nominee) on trust for such customers and as such, not part of the estate of CBL (including in an insolvency proceeding).

No right of retention to the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Local laws and regulations generally do not prohibit an upper tier attachment of the securities credited to the accounts. It is possible under local law to obtain an attachment order over assets of the debtor that are in the possession of a third party (the “Holder”, namely CBL in its capacity as holder of an account kept with the CSD), although a local court has discretion to take into account the damage such order is likely to cause to the Holder or to the public.

Insolvency of the custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Confirmed, not directly foreseen as such but should be covered by analogy.

Settlement finality in case of insolvency

Confirmed