In recent years, due to the global impact of the COVID-19 pandemic, disruption has occurred in various kinds of physical document operations. Distance services such as working from home, 0-Touch Economy, and online trading have become the mainstream in this pandemic era and accelerated the digital transformation of each industry.
In light of the indispensable role that fixed income instruments play in the capital market, along with the application of innovative technology and the trend of inclusive financing, TDCC had started optimizing the bond market book-entry operation procedure by the end of 2020and launched services for bond price negotiation transactions between bond dealers and custodians as well as between bond dealers and bond dealers. The bond trade confirmation slips, delivery lists, clearing and settlement slips, and the issuance of bond passbooks can be conducted electronically, creating positive effects on the market:
Both trading parties confirm the trading slip in real time, which shortens the reconciliation process.
When a bond dealer applies for early termination of the bond passbook, a write-off is activated as soon as the buy-side counterparty concedes online. The physical procedure at the counter and the delivery of hardcopy affidavits are eliminated, effectively streamlining the procedure and elevating the operation efficiency.
Through blockchain and digital certificate signature, trade confirmation slips sent by the dealers are processed with ID authentication as well as data encryption and saved in the blockchain. This can not only ensure data integrity, non-repudiation, and security but also serve as digital evidence.
Since the service above went live, the number of bond trade confirmation slips, delivery lists, clearing and settlement slips, and the created bond passbook transmitted electronically has reached over 210,000 in total in a year. The efficient operations have won positive feedback from dealers, achieved environmental protection, as well as reduced energy consumption and carbon footprint. This year, TDCC has further organized the digitalization of bond price negotiation and trade confirmation slip service between bond dealers and investors. Through a computer, smart phone, or tablet computer, investors can connect to the newly constructed online platform through an email link or log-in to receive updates on bond trade confirmation slips anytime.
The electronic submission service for trade confirmation slips between bond dealers and investors is expected to go live this August. The service will entirely replace the long-standing, complicated procedure, which relied on postal services or couriers to physically deliver the hardcopy bond clearing and settlement documents after they were officially sealed. The new service reduces human labor costs and serves as an effective solution to dematerialization and non-contact issues during the post-pandemic era.
Looking into the future, TDCC will continue developing the digital financial application field, strengthening information security, and designing an integrated interface to provide a wide range of commodities. In addition, the company will utilize its data analysis capabilities to construct a reliable and high-quality digital asset platform for investors.
