Taiwan Depository & Clearing Corporation

Given the Financial Supervisory Commission's (FSC) policy to achieve import substation in the financial sector, the Taiwan Depository & Clearing Corporation (TDCC) has collaborated with two of the world’s largest international depositories, Euroclear and Clearstream, since 2014 in providing cross-border securities custody services. To date, the three major pillars of the cross-border custody operations have started to bear fruit. The first is foreign bond remittance, which saw transaction value (inbound and outbound remittance combined) rising by 400% YoY to almost NT$30bn since 2H15 to date. The second is foreign bond settlement for securities brokers, which allows brokers to trade and access custody and settlement services in Taiwan. Since the launch of the service in July 2015, the turnover has to date surpassed NT$70bn. The third is cross-border custody service, which has processed around 50 foreign securities since commencement of the service in August 2015. It is estimated that the number of foreign securities under TDCC's custody will rise to 200 in 1Q16, indicating a more buoyant outlook in 2016.

TDCC developed a localized, user-friendly, Chinese interface, aiming to provide cross-border settlement and custody services that are safe, efficient and instantaneous. The aforementioned post-trade services are intended for institutional investors that have ventured into the global markets. So far, a total of 18 institutional clients, including insurers, banks, securities brokers and bill dealers, have made use of the services, and more institutional investors will likely follow suit going forward.

Since the launch of the cross-border custody services, TDCC has processed a wide array of securities, including medium-term notes (MTN), collateralized mortgage obligations (CMO) and long-term notes traded in the US, Europe and Asia, and denominated in various currencies, such as the US dollar, Euro, Australian dollar, Renminbi, Indonesian rupiah, Indian rupee, Russian rubble and Mexican Peso. Also, TDCC has established an indirect link with the US Fedwire and Depository Trust & Clearing Corporation (DTCC), which allows it to complete cross-border operations, such as DVP settlement, securities transfer, fund remittance, principal & interest payment, book entry and inventory account management.