Comprehensive Financial Market Infrastructure and Regulation
In response to the development of Fintech , TDCC offers financial services in an innovative way; in addition to reinforcing infrastructure, we have gradually transformed ourselves into an information service provider that promotes dematerialization and electronic services in hopes of reducing operating costs of the banking industry, regulators, and our investors. As a post-trade facility in both the capital market and the money market, TDCC always endeavors to build infrastructure in financial markets, which improves trading efficiency, reduces the costs of manual works, and automates operations. This makes financial markets and the investment environment in Taiwan better.
- For walk-in transactions that require a passbook, investors may present the bar-code by smart phone instead, which saves investors from carrying their passbooks.
- Create a smart, efficient securities market that is free of passbooks
- A way/system to verify an ePassbook user with multiple service providers using a onetime password was patented; TDCC is now applying for the patents in China and the U.S. respectively.
- Three patents on TDCC's ePassbook have been approved on January 1, 2018.
(2)Annual general meeting e-voting platform ″TDCC StockVote
- An automated cross-platform way/system to carry out shareholders' voting was patented in 2017.
- The number of StockVote users reached 1,223 in 2017, including 680 voluntary users.
- The total number of shares represented by electronic voting reached 281.7 billion in 2017; the average percentage of shares represented by electronic voting to those represented by attendance was 49.40%.
- StockVote improved the efficiency of shareholders' meetings and saved time and manpower for issuers to convene shareholders' meetings.
(3)AML/CFT Screening Platform
- The platform has saved huge costs of building respective anti-money laundering systems and complying with laws and regulations.
- Users may upload a certain amount of data based on their needs to review existing customers or a certain number of customers.
- The platform meets the requirements of regulators and the Financial Action Task Force on Money Laundering (FATF) to respond to APG's evaluation.
(4)Cross-border Voting Operation via Straight Through Processing (STP)
- Provide more time for foreign shareholders to vote.
- Establish standard, one-track procedures for voting, which reduces costs and operating risks.
- Extend time and opportunities for issuers and foreign shareholders to discuss proposals.
- Strengthen foreign investors' trust in the Taiwan market and increase the international visibility of listed companies in Taiwan.
(5)Securities Book-entry Operation
- Ensure safe securities delivery and reduce material breaches of contracts.
- Provide a single operating window for securities dealers to save investors from collecting stocks at issuers.
- Reduce the costs of manual works and manual errors.
- Increase the operating efficiency and safety of securities dealers, streamline delivery, and improve trading efficiency.
- Reduce the operating risks arising from the volume of material securities traded in the securities market.
- Remove loss or risks of forgery derived from shipping operations.
(7)Short-term Bills Central Depository Clearing and Delivery
- Effectively eliminate default delivery risks of counterparty.
- Protect the safety of delivery, increase trading efficiency, and reduce the costs of manual works in line with the standards for clearing and delivering large-amount transactions established by the Bank for International Settlements (BIS).
(8)Commercial Papers (CP2) Dematerialization
- Reduce manual works and risks of issuers and bills dealers in the primary market.
- Strengthen infrastructure in Taiwan's short-term bills market and promote the development of the short-term bills market.
- Reduce the costs of physical CP2 printing and achieve the goal of energy conservation, carbon reduction and environmental protection.
- Bills dealers are no longer restricted by par values of physical bills, which brings more flexibility to business promotion.
(9)Negotiable Certificates of Deposit (NCD)
- Work with the CBC, the regulator, the bankers association, and the bills association to establish related systems that regulate the statutory position, issuing denominations, interest rates, sales targets, trading denominations, interest, tax rates, and the clearing and delivery system of NCD.
- Provide reports for the CBC's review.
(10)Futures Clearing System
- The after-hour trading platform established in the futures market provides investors more diversified hedging channels. Investors may participate in after-hour transactions in response to international markets using existing futures trading accounts.
- The system provides after-hour transaction processing, risk controls, and automatic payments, controlling risks immediately and enables diversified investments and hedging.
(11)Fund transaction Platform
- Save operating and labor costs, improve efficiency, and reduce operating risks and costs.
- Meeting investors' needs to purchase offshore and domestic funds simultaneously at the one-stop shop.
(12)Fund Information Transmission Platform
- Eliminate manual errors and save costs.
- Automate order routing and confirmation of domestic and offshore funds.
- Streamline complicated operations between institutions significantly.
- Improve the efficiency and safety of the overall fund operation.
(13)Securities Depository System
- Automate operation integration and reduce time difference and operating risks.
- Improve the efficiency and safety of data retrieval.
(14)Short-term Bills Central Depository Clearing and Settlement System (BCSS)
- Streamline the operating procedures in the bills market and improve the settlement efficiency.
- Facilitate the application of funds in the money market.
(15)Fund Declaration and Announcement Platform
- Help the regulator monitor and review the market and streamline the declaration procedures.
- Integrate network resources, reduce social costs, and achieve information transparency and disclosure, giving investors immediate access to the information on futures trust funds and domestic and offshore funds on the same platform.
- Reduce the operating time and costs of master agents significantly.
- Provide the CBC periodic reports that cover the purchase, sale, and interest repayment of foreign currency denominated bonds, so that the CBC can have the most complete information on foreign exchange income and expenditures associated with foreign currency denominated bonds.
- Establish the cross-border system, introduce international custodian technologies, and develop talents in cross-border custody.
- Establish the local cross-border custody system for cross-border custody participants to reduce their costs of construction and operation and help control the operating procedures.
- Exchange information with foreign depository institutions and provide real-time services through the system, and reduce the operating risks arising from human intervention of cross-border-custody participants.
(17)Taiwan Bills Index Rate (TAIBIR)
- Eliminate false prices and maintain the fairness of the market.
- Serve as a benchmark for assessment and analysis of financial and investment strategies.
- Make full use of money market information and save social resources.
- Serve as a reference for pricing and valuation of NTD denominated floating rate financial products and risk management.
(18)Offshore Structured Notes Market Observation Post Platform
- Improve the market transparency of offshore structured products significantly to protect investors' rights and interests.
- Assist investors with asset management to reduce investment risks.
- The declaration platform changed to receive applications in electronic form to improve the operating efficiency, reduce carbon emission, and achieve the paperless goal.
(19)Depository Account Query System
- Investors may search for information on all central depository subjects through a single query platform.
- Reduce paper consumption for application and identification to achieve the goal of energy conservation and carbon reduction.
- 330,427 written inquiries were processed in 2017; TDCC provided dedicated electronic inquiries for Administrative Enforcement Agency, Ministry of Justice, Control Yuan, Agency against Corruption, Ministry of Justice, civil execution departments of district courts, Ministry of Health and Welfare, and revenue services, and processed 6,920,447 electronic inquiries in 2017, significantly increasing the inquiry efficiency of public agencies.
- Provide external units dedicated electronic inquiries to save costs and improve efficiency.
(20)Online Automated Service for Issuers
- Improve the operating efficiency of depository institutions and issuers and save the costs of manual works
- Reduce manual errors to meet the requirements for information security and personal information.
- Save 13,000 man-hour for operators every year.
- Established C.A.Net to setup standard corporate actions information and automated processing, to provide a safe, efficient, and convenient environment for information transmission.
(21)Guidance on Securities Dealers' Central Depository Internal Controls and Audits
- Stabilize the operation of securities dealers, ensure investors' rights and interests, and maintain the safety of the securities market.
- Prevent any damage to investors' rights and interests and maintain the sound development of the securities market.
- Ensure the safety of data, systems, equipment, and networks used in related operations to protect investors' rights and interests and maintain the smooth operation of the securities market.
(22)Introducing the Foreign Account Tax Compliance Act (FATCA)
- Ensure that cross-border custody and delivery are provided in compliance with the FATCA.
- Prevent customers' income of American sources from being withheld to maintain customers' rights and interests.
Personal Information Protection and Information Security
Environmental Protection and Green Operations
Due to the nature of TDCC's business, office utilities are the main source of energy consumption. We have gradually achieved green operations by changing employees' working habits, reusing resources, and using highly efficient equipment; in addition, we are committed to promoting dematerialized financial certificates and electronic services, improving the operating efficiency of financial institutions and investors, and reducing the environmental impact.
TDCC values customers' feedback and provides a diversity of channels for customers to express their opinions. Customers are welcome to make complaints through the customer service hotline or walk-in services, on the official website, or by e-mail.
To understand customers' satisfaction with the quality of products and services provided, we conduct the customer satisfaction survey for five categories of customers (securities, bonds, bills, domestic and offshore funds, and stock agencies) every year. In 2015 and 2016, we adopted the quantitative survey and designed the survey based on the six-grade assessment. The overall satisfaction reached 99.54% and 99.47% respectively. In 2017, we adjusted the survey questions, rating items, and calculations, adopted the ten-grade assessment instead, and conducted the survey using the customized program based on the purpose of the survey and responding logic. A total of 264 questionnaires were distributed and all of the 264 questionnaires were retrieved. The average satisfaction of TDCC scored 92.25 points. Every category of customers rated TDCC's Corporate Image and Value the highest, reaching 93.97; the average score of Customer Service reached 92.09.
Domestic and Overseas Marketing and Communication
TDCC offers a diversity of products and services. To allow participants and employees to understand new products and services, TDCC organizes seminars, training courses, and visits on a regular basis every year in the hope of improving the operating efficiency and security quality. TDCC promotes international business and communication. We participate in ACG general meetings to understand the international market trends and strengthen international cooperation; we also sign MOU with international central depository institutions to develop business opportunities and demonstrate Taiwan's soft power in international capital markets.
In 2017, TDCC organized 10 business seminars for securities dealers, and 1,366 securities dealers attended; 17 seminars on securities book-entry operation were organized, and about 5,000 operators attended; 5 seminars on dematerialized registration and the fund declaration and announcement platform were organized; 4 seminars on the issuance of CP2 in a dematerialized form were organized. TDCC also organized 7 seminars on the AML/CFT screening platform and appointed employees to help Department of Commerce, Ministry of Economic Affairs and trade associations organize 29 seminars (4,716 attendants). TDCC also organized seminars on the amendments to the standards for internal control systems for stock agencies, seminars on the request and use of power of attorney in shareholders' meetings, and training courses for stock agencies (1,229 attendants).
In 2017, TDCC also worked with Securities Investment Trust & Consulting Association of the R.O.C. to promote fund products and wealth management after retirement by organizing a series of activities, such as setting up an activity website and a trading area and organizing a fund investment mock competition on campus, so as to strengthen the understanding of quality Taiwan equity funds and attract young and petty investors, further creating new financial momentum. In 2017, we organized 32 seminars on financial knowledge on campus, and a total of 3,756 students attended.
International Business Promotion
To improve foreign institutions' understanding of Taiwan's capital market and TDCC's existing operations, we have communicated with foreign institutions and organized visits or training programs; we also attended international conferences to share our successful experience in various products and services with international securities institutions, so as to improve our global visibility and connections with international markets.