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 and other services, 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. We also assist regulators in supervising financial market through different systems and making sure participants, securities dealers and service providers comply with rules and implement the internal control system. In this way, we can ensure the service quality, investors' equities and the security of the national financial market.
Reinforcing Financial Market Infrastructure
I. TDCC ePassbook 2.0 App Service
- Investors can know information timely about the market, stocks and areas they invest. Only in this way can they safeguard their interests fully
- Create a smart and efficient securities market that is free of passbooks
- TDCC ePassbook has been patented in Singapore in 2018
- 60% of investors have opened their security accounts through TDCC ePassbook
- TDCC ePassbook has attracted more than 600,000 investors
II. Shareholders meeting e-voting platform "TDCC StockVote"
- This can help improve the discussion efficiency of the shareholders meeting and reduce the manual work and time for convening such a meeting
- TDCC StockVote was patented in Singapore as an automatic platform and system for shareholders to implement voting
- 1,734 public companies used the TDCC StockVote in 2018
- Shareholders who own an average of 50.86% of shares used this platform when attending their shareholders meeting, setting a new record
- In 2018, 97,624 votes were made through this platform by shareholders of foreign companies, growing by 5,893 compared with 2017
III. Cross-border Voting Operation via Straight Through Processing (STP)
- Provide more time for foreign shareholders to vote. Extend time and opportunities for issuers and foreign shareholders to discuss and approve proposals
- Establish standards, one-track procedures for voting, which reduces costs and operating risks
- Strengthen foreign investors' trust in the Taiwan market and increase the international visibility of listed companies in Taiwan
- In 2018, 1,723 publicly listed entities and companies in the Emerging Stock Market which have foreign shareholders received votes from the world's largest voting organization through our platform
- Foreign shareholders from 6 major custodian banks also used our platform. 97,624 votes were made by foreign shareholders in our platform
IV. Short-term Bills Central Depository, Clearing and Settlement
- Avoid risks of losing or fabricating documents during transportation
- Effectively eliminate default settlement risks of the counterparty
- Protect the safety of settlement, increase trading efficiency, and reduce the costs of manual work in line with the standards for clearing and delivering large-amount transactions established by the BIS.
V. Dematerialization and Electronic Issuing and Entry of Commercial Papers (CP2)
- Reduce manual work and risks of issuers and bills dealers in the primary market
- Strengthen infrastructure in Taiwan's shortterm bills market
- Until the end of 2018, about 3,400 issuers had opened their issuing account and registration of commercial papers worth NT$16.4 trillion had been finished in our platform
VI. Futures Clearing System
- The after-hour trading platform not only helps investors know and use more channels of hedging but also enables them to trade instantly according to market changes. Investors can trade in this platform with their domestic accounts
- Investors can manage transactions and risks through this system. Dividends flow into their accounts automatically. The system enables investors monitor risks in real time, conduct diversified investments and hedging
VII. Fund Transaction Platform
- Streamline operations, save labor cost, improve efficiency and reduce operation risks and back office operation cost
- Meeting investors' needs to purchase offshore and domestic funds simultaneously at the onestop shop
- Streamline complicated operations between institutions significantly
- Assist regulators in monitoring and verifying the fund market
- The fund monitoring station has got nearly 500,000 hits every year since its launch
VIII. Securities Depository System "TABS"
- Automate operation integration and reduce time difference and operating risks
- The system can be expanded flexibly according to the needs of the market
- Improve the stability and efficiency of the system
IX. Short-Term Bills Central Depository Clearing and Settlement System(BCSS)
- Streamline the operating procedures in the bills market and improve the settlement efficiency
- Assist regulators in getting all information about the transactions, credits and risks of the bills market
X. Cross-Border Custody
- 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
- Provide the CBC with information on foreign exchange income and expenditures. Establish the cross-border system for Taiwan financial market, 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 custodian banks and provide real-time services through the system, and reduce the operating risks arising from human intervention of cross-border-custody participants
XI. Depository Account Query System
- Investors may search for information on all central depository subjects through a single query platform.
- Now investors can search for central depository subjects through Internet by themselves. Other organizations can search through an exclusive electronic path, which effectively reduce costs and improve the query efficiency.
- 8,955,290 queries were made through this system in 2018.
XII. Online Automated Service for Issuers
- Reduce manual errors to meet the requirements for information security and personal information
- In 2018, there were 1,294 applications for demergers, 12,700 demergers of securities, 1,279 times of transmission of dividend distribut ion information, 16,340 times of transmission of preferential tax rates information were made in this system. The times of information transmission increased greatly compared with 2017
- Transmission of information about shares subscription through SPO became available in 2018, saving 1,725 man-hour for custodian banks and stock dealers
Assisting in Market Supervision
I. AML/CFT Screening Platform
- Reduce users' system establishment costs and enable the whole market to share benefits
- APG speaks highly of the wild coverage of this platform in our non-financial sector
II. Company Transparency Platform
- Improve the transparency of corporate information, strengthen our action against money laundering, demonstrate our determination to fight against money laundering and terrorism, secure success of the 3rd evaluation
- Electronic declarations greatly avoid the use of paper which improves efficiency, save energy and reduce carbon emissions
- On April 30, 2019, 586,167 companies have completed declaration in our platform, 85.00% of the total of 690,000 companies subject to declaration
III. Customer Due Diligence (CDD) Management System
- Conform to regulations and improve corporate governance
- Work time and 1,000 pieces of paper have been saved since we launched this system in Aug 20, 2018
- 2,594 cases of review and risk rating were finished till the end of 2018
IV. Structured Notes Query System
- Greatly improve the transparency of the offshore structural merchandise market and safeguard the equities of investors
- Enable investors to have reference for assets management and reduce their investment risks
- Issuers and master agents do not have to process each file which saves manual work and time, and improve the safety and efficiency of information declaration
V. Internal Control and Cyber Security Review Coaching for Securities Dealers
- Stabilize operation of securities dealers and ensure equities of investors and the security of the securities market
- Prevent violations of investors' equities and ensure healthy development of the securities market
- Ensure users' security of information, system, facilities and network. Safeguard the equities of all investors and maintain fluent operation of the securities market
Quality Customer Services
TDCC takes asset safety protection measures to safeguard customers' equities and privacy and ensure the safety of our service foundation. TDCC takes a customer-centered approach and develop careful and value-added services for our customers. In addition to setting up hotlines and customer service counters, TDCC also established a training platform on which users can take online courses and download related materials including those in the form of videos and audio, making sure customers can get updated information and excellent service.
Customer Satisfaction Survey
In order to grasp and understand the customer quality requirements on the products and services, we survey the satisfaction of correspondents according to five categories of respondents from securities, bonds, tickets, domestic and foreign funds and stock affair service agencies. In 2018, a total of 260 satisfaction questionnaires were distributed, and 250 valid questionnaires were collected. The overall satisfaction degree reached 90.47 points. Various categories of users give the highest assessment to the "Corporate Image Value" of TDCC, reaching 91.80 points, while the overall average score of the "Customer Service" part was 91.18 points. In the "Merchandise Service and Information Performance" part, the overall average score is 90.05 points, and the average scores of all three have a positive affirmation with over 90 points, indicating that the current businesses and services of TDCC are generally appreciated by users.
Personal Information Protection
Because of our business, TDCC has documents of many investors. Therefore, information security is our top priority. We introduce a complete investment protection system to safeguard entities of customers and ensure information and communication security. TDCC has implemented Taiwan Personal Information Protection and Administration System (TPIPAS) since 2012 and achieved dp.mark issued by the Ministry of Economy after verification of professional institution in 2013. We pass that verification every year to maintain the validity of the dp.mark. We received no complaints of violating customer privacy or losing any material in 2018.
Domestic and Overseas Marketing and Communication
TDCC keeps pace with the times, continuously introduces diversified products and services coordinated with domestic and foreign laws and regulations and combined with the big data and cloud technology, and holds a number of business promotion description sessions, training, information promotions and various visiting and exchange activities so that the investors and the employed personnel can understand various new operations and businesses. In the promotion of international business, we actively participate in the Asia-Pacific depository institutions, sign memos of cooperation with international depository organizations, and closely interact with depository institutions, clearing institutions, and custodian banks of different countries, and share topics about business promotion, financial governance and information security through forums and seminars.
Domestic Business Promotion
We launched a number of products and services in 2018, and held a number of description sessions and trainings to enable investors and employed personnel (depository practitioners) to understand the advantages and services of each product to promote the development of the financial market. TDCC ePassbook has been well reputed since its launch in 2017. TDCC collected suggestions and preferences of all users and launched Version 2.0 in 2018, which can integrates information of various securities dealers and provide a comprehensive management platform for investors to easily grasp the inventory of own assets. In order to continue to promote the TDCC ePassbook, we will continue to hold 21 business promotion description sessions, 3 securities dealer business exchange meetings, and participate in various exhibitions and lectures such as the Financial Services Love Carnival and the Seminar on New Trends in Investment in 2018 for propaganda. As of April 2019, 600,000 households have applied for the TDCC ePassbook, and survey shows that 60% of the investors with new accounts select TDCC ePassbook.
International Promotion and Exchange
Taiwan is in an open capital market. In order to master the trend of international financial supervision and related business development, and to be internationally compatible, TDCC actively participates in international organizations, and masters international dynamic state through international meetings and personnel exchanges and training, and we share business development experience on important occasions of international meetings to enhance the international visibility and strengthen the connection between Taiwan and the international market.
Environmental Protection and Green Operations
Carbon reduction is not only a slogan, and it should be implemented into practice. We carried out 2018 greenhouse gas inventory according to ISO 14064-1 to have an understanding of our emissions through international standards, which was verified by DNV GL Business Assurance Co., Ltd. as the basis for follow-up improvement. This certificate is not only the first greenhouse gas inventory report of securities and future units in Taiwan, but also a declaration of our determination in energy conservation and carbon reduction based on our corporate social responsibility.
Greenhouse Gas Inventory
The greenhouse gas inventory was carried out for the first time in 2018, so the emissions were only greenhouse gas emissions within the boundaries of TDCC.
Seen from the observation point, the emissions are mainly from Nangang office and computer room, accounting for nearly 60% of the emissions of the TDCC in 2018. As the information room is the core of ourmain operations, it requires 24-hour uninterrupted operation and high monitoring and management to maintain the normal operation of the financial market system. Therefore, it uses a large amount of electricity to operate and maintain. The head office in the Hungya Building is an office building with emissions mainly from electricity use (nearly 91%). Due to the rental relationship, it is not possible to significantly improve the air-conditioning equipment of the building. However, we continue to promote and improve office habits and electricity management to reduce unnecessary power consumption.