Euroclear Bank to become member of Tel Aviv Stock Exchange

JERUSALEM (Reuters) - Euroclear Bank will join the Tel Aviv Stock Exchange (TASE) as the first financial institution to become a custodial member, they said on Monday.

The membership, taking effect next month, will allow Brussels-based Euroclear to access TASE directly without engaging in trading activity, while providing settlement and asset services for domestic Israeli securities.

Euroclear has similar arrangements with exchanges in Argentina and Mexico.

Frank Slagmolen, deputy head of global capital markets at Euroclear, said the bank has significant numbers of institutional clients that trade in Israel but currently needed to go through third parties.

Settling in Israeli instruments will be safer and easier for its clients and will further strengthen its global network, he told Reuters.

TASE, which has been struggling with delistings and declining trading volumes, became a public company this month after completing an initial public offering.

“Hopefully... we will be get more players who are custodial members so they have direct access to the Israeli market,” said Orly Grinfeld, a TASE vice president.

(The story has been refiled to remove extra word in headline.)

Reporting by Steven Scheer; editing by John Stonestreet