The Tel Aviv Stock Exchange (TASE) is working with Accenture to build a distributed ledger technology-based securities lending platform.
Working with Intel and local fintech centre The Floor, TASE and Accenture are looking to the blockchain to fill a gap in the Israeli market. According to TASE, there is currently no central securities lending platform in the Israeli market. Securities lending is at present executed in the capital market, primarily using inter-bank mechanisms within, and if necessary outside, banking group limits.
he platform will function as a “one-stop-shop” for all securities lending activities, permitting access to larger securities volumes within shorter timeframes, says the exchange operator.
The project will begin with a proof-of-concept, followed by a live deployment, using a private ledger on Hyperledger Sawtooth that taps Intel Software Guard Extensions technology to encrypt transaction data.
Ittai Ben-Zeev, CEO, TASE, says: “The Blockchain technology will present a new level of safety for securities lending and will support growth for transactions based on this new platform. Without a doubt, TASE is now, more than ever before, a global financial innovation leader.”
TASE was founded in September 1953. The TASE group, which consists of the stock exchange, the Nominee Company, the TASE Clearing House and the Derivatives Clearing House, provides local and international investors with trading and clearing in securities, including stocks, corporate bonds, government bonds, index-tracking products and derivatives.
TASE is home to over 450 listed companies, with a total market value of approximately $200 billion, 688 corporate bonds and 709 ETFs.