Tel Aviv Stock Exchange to Launch Blockchain Platform for Securities Lending

Tel Aviv Stock Exchange (TASE) announces recently to launch a new blockchain platform that it claims will become the “one-stop-shop” for lending securities in Israel.

August 3, 2020 | AtoZ Markets – The Tel-Aviv Stock Exchange (TASE) announces recently the first-ever launch of a Central Blockchain Securities Lending Platform, which is an innovative and groundbreaking financial technology. This will enable capital market players to direct lending among all the major financial instruments.

Tel Aviv Stock Exchange blockchain to go live on November 2

Notably, TASE plans to launch its blockchain-based securities lending pool on November 2. There is currently no central securities lending platform in the Israeli market. Securities Lending presently executed using inter-bank mechanisms within, and if necessary outside, banking group limits. Consequently, the market does not satisfy the potential needs of economic agents as it is not fully exploited.

Furthermore, this cutting-edge platform will transform the Securities Lending market in Israel by enabling direct lending among all the major financial instruments. The platform will function as a one-stop-shop for all securities lending activities. It will permit access to larger securities volumes within shorter timeframes, even operating in shorter-term positions.

In March 2020, members of the Tel-Aviv Stock Exchange were given access to an initial testing environment, in order to test lending transactions in the new platform and adapt their systems in preparation for the production phase.

How TASE benefits from using blockchain

The use of Distributed Ledger Technology (DLT) as the basis of this new trading platform will harness some of the blockchain’s primary advantages and features, such as direct peer-to-peer transactions, Smart Contract, and enhanced security through immutability.  TASE will benefit from all of these, as well as its custodians, and clients by reducing costs, increasing security. It will also enable the market to exploit its full potential.

Orly Grinfeld, EVP and Head of Clearing at the TASE said,

“TASE is proud to present this first-of-a-kind lending pool, a safe, cutting-edge and state of the art platform. The Blockchain technology will present a new level of safety for securities lending and will support growth for transactions based on this new platform. TASE is a global financial innovation leader, and strategically pursues the technological advancement of the capital market.”

Think we missed something? Let us know in the comment section below.

    Share Your Opinion, Write a Comment