Taiwan Depository & Clearing Corporation

TDCC is launching the Onshore Fund Centralized Clearing Platform for domestic funds to improve the efficiency of payment collection and disbursement in the investment fund market. The platform will be open for market testing in May, with participation from various fund management companies including Capital Fund, Franklin Templeton SinoAm Securities Investment Management Inc., Cathay Securities Investment Trust, Nomura Funds, President Securities Investment Trust, Fubon Securities Investment Trust, and other fund sales agencies and custodian banks such as Hua Nan Bank, First Commercial Bank, Taiwan Cooperative Bank, Chang Hwa Bank, Shin Kong Bank, Mega Securities, and Bank of Taiwan, with the aim of going live in the first wave.

The Onshore Fund Centralized Clearing Platform is a policy under the Capital Market Roadmap of the FSC, aimed at enhancing the market functions and competitiveness of financial intermediaries. TDCC consulted the centralized clearing systems of the fund markets in Europe, the United States, Japan, and South Korea, and combined years of experience serving the domestic fund market to complete business planning and platform construction. The goal is to standardize and automate services through the centralized clearing platform, converting the current multilateral payment operations of the domestic fund market to a "many-to-one, one-to-many" model. This will solve the current cumbersome payment disbursement and manual processing operations, strengthen the role of the fund industry hub, enhance the resilience of Taiwan's fund back-end infrastructure, and reduce operational costs for market players.

TDCC President Te-Hsiang Chen stated that the Onshore Fund Centralized Clearing Platform will go live by the end of June this year. Investment trust companies that sign contracts with TDCC and go live by the end of this year can apply to the FSC for recognition of specific performance contributions to the other initiatives aimed at enhancing the management and development of Taiwan's investment trust business under " SITEs Incentive Plan ". In addition, TDCC is also offering an early bird discount for free use of the settlement platform for the next two years, further enabling market players to enjoy the benefits of cost reduction and efficiency improvement. Apart from the market players participating market testing mentioned above, more investment trust companies, fund sales agencies, and custodian banks are expected to follow suit, with at least 70% of market players expected to go live by the end of this year, jointly promoting the efficiency and development of the domestic fund market.

President Te-Hsiang Chen stated that under the guidance of the FSC, TDCC will continue to work closely with fund industry players to promote innovation and development in the fund market, and is committed to building a safer and more efficient trading environment, enhancing the international competitiveness of Taiwan's capital market.