The Tel-Aviv Stock Exchange (TASE) is developing a securities lending platform that will operate using blockchain technology, with which it hopes to offer a wide range of new and innovative financial products to its investors.
The launch of the new platform blockchain for Tel-Aviv Stock Exchange (TASE)is announced for November of this year. It will act as an innovative system that will allow users to operate with direct loans in the capital markets through a wide variety of high-quality financial products and instruments. The new platform will allow TASE to adequately provide direct lending services to interested users and investors, while providing innovative financial solutions within current markets.
The need for a central and authorized platform for the operation of users and investors is the result of the current shortcomings that exist around the lack of a central system that allows direct operations between investors through various financial instruments.
“Currently, securities are lent through an interbank mechanism and, if necessary, a non-bank mechanism. As a result, the market does not adequately meet the needs of investors.”
Thus, through a new platform, TASE seeks to change the current lending system for a sophisticated and efficient one, which meets the growing needs of investors when carrying out their operations.
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The importance of blockchain within the new central securities lending system
Blockchain is a technology that has demonstrated incredible potential for carrying out financial transactions and operations, despite only having been in development for a few years. The speed, transparency, low cost, immutability, and many other qualities that technology offers, leads several companies and organizations, such as TASE, to consider its implementation for the creation of new financial instruments.
TASE's core platform will run on technology from Hyperledger Sawtooth, an enterprise blockchain platform designed by the Linux Foundation, with the aim of building distributed ledger networks and applications. It is expected that with the new platform, investors will take full advantage of the benefits of distributed technology, by being able to carry out operations and transactions directly between them. Likewise, among the financial instruments that investors can use are smart contracts (smart contracts), which will allow agreements and transactions to be concluded between various parties involved; In addition, the implementation of the blockchain will also allow transactions to be faster, transparent, decentralized and secure.
TASE expresses that the new system will increase the security of its transactions, as well as carry out operations at much lower costs than usual, exploiting the full potential of the capital markets.
“A central Blockchain securities lending platform in Israel will help investors lend their securities directly. This means a more direct process for them that can attract many new users to the market.”
For his part, the Senior Vice President and Director of the Compensation Department of TESA, stated that
“The Tel-Aviv Stock Exchange is proud to launch the first lending system of its kind as a secure and innovative platform. “Blockchain technology will enable securities lending trading while securing information and supporting growth in the number of transactions.”
About Tel Aviv (TASE)
The Tel-Aviv Stock Exchange (TASE) was founded in 1953. It is a public market for trading securities in Israel, and it plays an important role within the nation. Currently, it is estimated that the Stock Exchange covers about 620 companies, of which about 60 are also listed on the stock exchanges of other countries.
Although the TASE announcement indicates that this is the first time that the Stock Exchange has launched a blockchain-based core system that is dedicated to lending of value, in 2018 the exchange also announced the launch of a blockchain platform for lending of this value. type in association with multinationals the floor y accenture, the latter being an important partner in the development of the current platform.
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