Taiwan Depository & Clearing Corporation

To enhance the overall efficiency of fund payment and clearing in the domestic fund market, TDCC is building the "Onshore Fund Centralized Clearing Platform," which is scheduled to officially launch its services by the end of June this year. TDCC stated that several industry participants, including Capital Fund, Franklin Templeton SinoAm Securities Investment Management Inc., First Commercial Bank, Hua Nan Bank, Capital Securities, and Mega Securities, have shown enthusiastic response and will be the first to use the platform starting from July. They actively participate in the transformation and upgrade of the fund market.

Promoting the participation of asset management companies in the "Onshore Fund Centralized Clearing Platform" is an important initiative under the Financial Supervisory Commission's "Capital Market Roadmap" and its execution strategy of “boost functions and competitiveness of financial intermediaries.” Under the guidance of the competent authority, TDCC, together with relevant associations and industry participants, drew insights from foreign market fund centralized clearing systems. Over the course of approximately three years, they completed the planning and construction of the platform, as well as internal and external system testing, with the aim of enhancing the back-end service capacity of Taiwan's fund market and reducing operational costs for market participants.

Te-Hsiang Chen, President of TDCC, expressed that achieving a comprehensive upgrade of fund market services requires various regulatory adjustments, business designs, and coordination among information systems. The journey has not been easy, and he particularly thanked the guidance from the Financial Supervisory Commission, the assistance from the Securities Investment Trust and Consulting Association and the Trust Association, and the support from numerous industry participants. He is also pleased to announce that 14 fund companies have already signed contracts with TDCC, accounting for nearly 50% of the total fund assets under management. Additionally, 7 distribution companies and 8 custodian banks have cooperated in testing and actively participated.

To encourage early participation by industry participants, as long as asset management companies sign contracts with TDCC and start using the "Onshore Fund Centralized Clearing Platform" by the end of this year, they can apply to the Financial Supervisory Commission for recognition under the " SITEs Incentive Plan " for their concrete contributions to the operation and development of Taiwan's asset management business. Furthermore, TDCC is offering a "Early Bird Special" where users can enjoy free use of the platform for this year and the next year, further enhancing the cost-effectiveness of participating in the platform's services.

President Chen further explained that the launch of the "Onshore Fund Centralized Clearing Platform" marks an important starting point for the transformation and upgrade of the fund market. TDCC will uphold the spirit of "continuous progress," provide fund market services, and draw feedback to continuously improve the platform services and enhance the competitiveness of the domestic fund industry.