The Tel Aviv Stock Exchange Ltd (TASE:TASE) plans to upgrade and expand clearing services in foreign currency as part of its strategy of evolving the capital market in alignment with international standards.
Expanding clearing services and adding settlement foreign currencies, such as US Dollar and Euro, will allow the public companies to raise money from the public in foreign currency, enable the TASE members to settle OTC transactions in foreign currency, and give Israeli and international investors access to a wide range of corporate actions (e.g. redemption and interest and payment for tender offers) in foreign currency.
These changes will benefit all stakeholders in the local capital market: mutual fund managers will be able to issue mutual funds, including money market funds, that are denominated in foreign currency as a way of offering the public exposure to a variety of additional investment vehicles. International investors will be able to buy shares and bonds via OTC transactions directly in their own local currency, without the conversion need to shekels.
Furthermore, investors will be able to receive bond’s interest and redemption payments directly in foreign currency, eliminating substantial conversion costs for both the investors and the public companies.
Expanding clearing infrastructure to support settlement in additional foreign currencies is another step forward in the implementation of TASE’s strategy to evolve the Israeli capital market. This will align it with international standards and opening up the Tel Aviv Stock Exchange to global markets and international investors. The aim is to offer the general public, public companies and investors a broader and more diverse range of activities on the Israeli capital market.
