Taiwan Depository & Clearing Corporation

I. Transforming into an emerging financial information service provider

Since its establishment 26 years ago and following the merger with the Debt Instruments Depository and Clearing Company in 2006, TDCC has seen its scope of business expanding continuously from listed stocks to equity-based securities, futures, funds, bonds and short-term bills, with clientele covering the Central Bank of ROC (Taiwan), Ministry of Finance, TWSE, as well as major market participants like securities brokerages, bill dealers, banks, securities issuers and investment trust companies. After putting in place the system of full dematerialization of shares in 2011, TDCC has successfully transformed into an emerging financial information service provider, boasting the most advanced and convenient information services for every market participant, apart from the settlement, clearing and depository of stocks, bonds and bills.

Given the diversification of business, TDCC's income has also gone through significant structural changes, with the sales weighting of stock market turnover- and equity-based products declining sequentially. As of 2015, the sales weighting of equity-based products had dropped to close to 60%, while contribution from fixed income products, such as bonds and the other instruments, had increased substantially, indicating the income sources have diversified as well.

II. Making every effort to increase global exposures

In light of the internationalization of Taiwan's capital market, TDCC has been committed to increasing its global exposures. This is done by offering two types of cross-border services. The first is outbound services, which facilitate the trading activities of domestic investors in overseas markets. The second is inbound services, which help foreign investors engage in the capital market in Taiwan. So far, TDCC mainly provides three cross-border services: (1) offshore fund information transmission and payment; (2) STP cross-border voting; and (3) cross-border depository & settlement of international bonds, Formosa bonds, and foreign securities for professional institutional investors and Taiwan-Singapore Stock Trading Link.

As a part of the government's effort to promote financial import substitution, in recent years, TDCC has been focused on expanding the scope of its cross-border business. In fact, TDCC has opened an account at (and for) the world’s top two depositories, Euroclear and Clearstream, building the connection that allows more convenient and well-rounded payment/instrument clearing & depository and shareholder services in a cross-border context. Also, after years of hard work, TDCC has also penetrated into the fund market, providing the infrastructure and services required by the fund industry, including issuance registration, fund trading and pre-settlement matching services. Furthermore, TDCC is working with international fund information organizations to provide fully-automated fund order routing services.

III. Building a digitized depository ecosystem

Given the government's policy to promote the “Creating a Digitized Financial Environment 3.0” program, TDCC completed a major restructuring earlier this year. With the materialized securities depository business fulfilling its objectives, going forward, TDCC will focus more on the development of the financial technology (also known as FinTech), in an attempt to build a digitized depository ecosystem. Specifically, the existing business units and IT department have established their own task force for financial digitization, using the rapidly-developing mobile technology, Big Data, cloud computing, social network and Internet of Things to transform the existing businesses, capture the future trends of FinTech and seek innovation at the same time. To ensure more coordinated use of resources, TDCC established a brand new Fund & Global Services Department as a part of the restructuring, in an effort to provide more quality international services. Hopefully this will help TDCC expand its global presence and accelerate the internationalization of TDCC in the age of cross-border investment.