Taiwan Depository & Clearing Corporation

In coordination with the Central Bank of the Republic of China and Financial Supervisory Commission R.O.C, started from July 28, 2015, TDCC has been providing settlements in foreign currencies on the DVP basis to reduce the possibilities of default, while expanding the adequacy of fund payments. The settlements in foreign currencies on the DVP basis are mainly based on the correspondences between TDCC system and the Foreign Currency Settlement Platform from Financial Information Service Co., LTD. (FISC) to render all operations for the stocks issued in the primary markets, and all transactions in the secondary markets, as well as principal and interest payment on the DVP basis via the Internet.

The DVP service is applicable to the Foreign Currencies Denominated Bills and Bonds traded over the counter. Four currencies are now made available, there are US dollars, Chinese Yuan, Japanese Yen and Euro. One other remarkable trait of such service is the availability of cross boarder DVP settlements. TDCC effectuated the DVP mechanisms in New Taiwan dollar for bills in 2004, and bonds in 2006. As for now, the average daily settlement amount is calculated at NTD$ 330 billion. The service of settlement in foreign currencies on the DVP basis is made available to investors overseas. It's anticipated that these services for Foreign Currencies Denominated Fixed Income Products will advance the exercises in the secondary markets, therefore further promote the foreign bond and bill trades in Taiwan.

These services are complied with the DVP block trade standard procedures of the Bank for International Settlements (BIS). TDCC further adheres to the policies and planning of the Central Bank of the Republic of China and Financial Supervisory Commission R.O.C to expand their product lines to Negotiable Certificates of Deposit (NCD) in foreign currencies to strengthen the money market implementations for the banks, elevate the versatilities of foreign bond resources, and diversify the financial instrument investment combinations for enterprises and individuals.