Capital allocation of banking corporations due to exposure to the TASE clearing houses remains reduced
The Israel Securities Authority announced (June 29, 2017) that the TASE Clearing Houses are to be considered a Qualifying Central Counterparty (QCCP) in accordance with complies with CPMI-IOSCO’s Principles for financial market infrastructures (PFMI).
The decision of the Israel Securities Authority to recognize the clearing houses as qualified, is the product of a two-year process during which a large number of activities were carried out to improve the risk management system, corporate governance and other areas of activity in the TASE Group, similarly to what has been done in the world’s leading clearing houses in recent years.
The recognition attests to reduced risks, the strength of the clearing houses and their activity in accordance with international standards.
In addition, the TASE clearing houses will continue to be considered by the Bank of Israel as a qualifying central counterparty, and accordingly, the capital allocation of banking corporations due to exposure to TASE clearing houses will remain reduced. The reduced allocation and the certainty thereof will allow banking corporations to increase their activity at Israeli capital market.
Prof. Shmuel Hauser, Israel Securities Authority Chairman, said: “The TASE clearing houses are part of the critical infrastructures in the Israeli capital market, their efficiency and stability are necessary factors that enable continuous trading. The adoption of international standards and their application to TASE clearing houses is another step by the ISA to strengthen the capital market and the status of Israeli regulation as meeting international standards”.
Ittai Ben Zeev, TASE CEO, said: “We thank the Israel Securities Authority for their cooperation. We see great importance in the Israel Securities Authority’s recognition of the TASE clearing houses as complying with international standards, similarly to leading clearing houses in the world. Compliance with these standards improves existing infrastructure in the TASE Group and will enable the continued successful implementation of the strategic plan of the Tel Aviv Stock Exchange”.
