Market Link Guide – Israel
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect link via Citibank N.A. Israel 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., Israel Branch |
FATCA GIIN | Not available | NXUTG8.00000.BR.376 |
LEI | 213800WG3A9RJ78EGT48 | E57ODZWZ7FF32TWEFA76 |
Country of incorporation | Israel | U.S.A. |
Account type | Segregated account | Omnibus account |
Legal Account name/holder | Account holder: Citibank NA Israel Branch Citibank NA Israel Branch as the participant in TASE-CH holds an individually segregated account for CBL. Securities listed on TASE are recorded in the name of Citibank NA Israel Branch for clients and registered in the name of one of three “nominee companies” belonging to local banks (Bank Hapoalim Ltd; Mizrahi-Tefahot Bank Ltd) or Tel Aviv Stock Exchange, selected by the issuing company: Bank Hapoalim Ltd – 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/No | Remarks | |
| 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 Israel 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. 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 9 October 2023. 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 clients, such beneficial ownership resides with the clients, 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 clients 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 |