TDCC Embraces the Year of the Tiger with a Brand-new eSMART System


To make investing in Taiwan easier and more efficient for foreign investors, the Taiwan Depository & Clearing Corporation (TDCC) created a new eSMART digital book-entry platform in an effort to comply with the government's framework for Capital Market Roadmap. The new eSMART platform provides digital services for custodian banks to open custodial book-entry transfer accounts on behalf of foreign investors. Upon its launch on December 20, the new eSMART platform will further reduce costs and increase efficiency for securities firms and custodian banks when they apply, sign, transfer and safe-keep documents online.

"Each year, custodian banks open over 12,000 accounts for foreign investors. That number goes beyond 33,000 if we consider the changes made to the accounts. Such tremendous back-and-forth paperwork and human labor will be taken care of by the new eSMART system, saving nearly 12,000 hours of labor annually for securities firms and custodian banks. Digital transfer and custody of documents will also save over NT$5,000,000 each year, and that paper amounts to about half the height of Taipei 101. With this solid foundation for the digitalization of the capital market, we will see better ESG performances while contributing to environmental sustainability," said Han-Chiang Chu, TDCC's President.

TDCC Chairman & CEO Sherman Lin stated that the provision of digital account opening is the first step for a new "Digital TDCC" era, with an overhaul of book-entry services in the next 3 years, which will expand to cover all participants such as securities firms, custodian banks, distributors, bond dealers, and issuing companies. More than 800 digital services will undergo major changes in areas like the custody and settlement of stocks, bonds, funds, as well as other stock affairs. These digital, online services will merge with the e-Passbook app to make it more convenient for investors so no visits to physical counters will be necessary.

Sherman Lin also said that TDCC will continue to develop back-office digitalization based on big data and with investors in mind. Besides eSMART, TDCC is pushing for open data in the securities and futures industry, and is working on projects such as "Open Securities," and "Onshore Fund Settlement Hub" under the authority's supervision. Taiwan's digital financial market will be a more inclusive eco-system for participants including securities firms, leveling up Taiwan's digital competitiveness.