Tel Aviv Stock Exchange Ltd (TASE:TASE) plans to upgrade and expand its foreign currency clearing services as part of its strategy to develop the capital market in line with international standards.
The expansion of clearing services and the addition of foreign settlement currencies such as the US dollar and the euro will allow public companies to raise funds from the public in foreign currency, allow TASE members to settle foreign currency OTC transactions and they will provide access to Israeli and international investors to a wide range of corporate actions (eg redemption and interest and payment for offers) in foreign currency.
These changes will benefit all stakeholders in the local capital market: fund managers will be able to issue mutual funds, including money market funds, denominated in a foreign currency as a way of offering public exposure to a variety of additional investment vehicles. International investors will be able to buy stocks and bonds over the counter directly in their own local currency, without the need to convert to shekels.
In addition, investors will be able to receive interest and bond redemption payments directly in foreign currency, eliminating significant conversion costs for both investors and public companies.
The expansion of the clearing infrastructure to support settlement in additional foreign currencies is another step forward in the implementation of TASE’s strategy for the development of the Israeli capital market. This will bring it in line with international standards and open the Tel Aviv Stock Exchange to global markets and international investors. The aim is to offer the general public, public companies and investors a wider and more diverse range of activities in the Israeli capital market.