Clearstream, the global liquidity provider within Deutsche Börse Group, enables international investors to easily access Israeli securities through a new settlement link that was launched today.
The international central securities depository (ICSD) will offer settlement and custody services for all asset classes denominated in Israeli Shekel, i.e. equities, corporate bonds, government bonds, treasury bills and warrants. The domestic settlement link will enable Clearstream customers to develop post-trade solutions for the Israeli market, with Clearstream as their single point of access. Citibank N.A. Tel Aviv is Clearstream's direct agent in Israel.
Mark Gem, Member of the Executive Board and Head of Network Management at Clearstream, said: "We continue to expand our global reach by adding Israel to our settlement network. Clearstream is the place where issuers and investors meet to settle their transactions, for funding and investing respectively. The settlement link to Israel will help bringing these parties together. We will continue to facilitate market access and openness."
Ralph Shaaya, Citi Israel CEO, said: "After an extensive due diligence process, we are proud to have been selected as the custody bank to support Clearstream's entry into the Israeli market, and look forward to working with Clearstream to facilitate and increase foreign activity in Israel." David Levy, Citi Israel Securities Country Manager, added: "As the only foreign bank in Israel offering these services for international clients, we are in a unique position to leverage our global network and experience to benefit our clients and the market."
Morgan Stanley Capital International (MSCI), the provider of investment decision report tools, effective May 2010 reclassified Israel from emerging market to developed market status, thus increasing the attractiveness of Israeli securities for international investors. On 24 April 2011, the central bank of Israel increased its 2011 economic forecast for the country's Gross Domestic Product (GDP) growth from originally 3.8 percent to 4.5 percent.