Computerizing book-entry operation for securities
The depository and book-entry system of TDCC is a two-tier structure which investors open accounts with participants and participants open accounts with TDCC. But in practice, the operations are proceeded in one-tier computer processing.
(1) Computer Processing
TDCC provides computer processing services for participants such as computer linkage and batch operations.
a. Investor Information Management
The investors open accounts with the participants. The participants input the data of the name, ID number, registered address, mailing address, number of the bank account, code of the securities finance firm on the terminals when investors open accounts. Once any of the above items changes, the operations are proceeded in the same way.
b. Investor' Account Balance
While the investors deposit, withdraw and transfer the securities, or conduct pledge creation, buyback of beneficiary certificates or instant transfer, the participants input the changes on the terminals, record the passbooks of the investors and deal with the necessary changes to the account.
c. Handling the Passbooks
While issuing, reissuing, updating, reporting missing and replacing the passbook, the participants enter the handling record on the terminals.
d. Settlement and Clearing
With information on the day's transactions, if there is any need to report errors, corrections to account numbers, or alterations to agency operation types, the necessary modifications to the transaction data will be input into the computer system of TWSE.
e. Daily Closing Account Books
The participants close the account books and print the reports everyday via linkage system.
The linkage system provides the inquiry services of basic data of the investors, balance, trading information and shortage of securities etc.
After daily linkage operations, TDCC handles the book-entry and back-up all files on batch.
a. Pre-Calculation of the Trading Information
TDCC compile the settlement report based on the trading data of TWSE and GTSM. If there is securities shortage for settlement, TDCC notifies the shortage notice to the participants which can make it up before the deadline.
b. Book-Entry for Settlement
TDCC completes the book-entry transfer on T day so the investors can update their passbooks after trading day.
c. Book-Entry for Distribution
The day before listing of new share, TDCC compile distribution list based on the media containing names, account numbers, ID numbers or registered numbers for enterprises and the amount of securities provided by the issuing companies in order to transfer the new shares to investors' accounts.
d. Transfer and Interest/Principle Payment
TDCC compile shareholder list based on the account balance of the investors and sends to the issuing companies or transfer agent for transfer on ex-rights day. On the date of interest/principle payment for bonds, the interest/principle will be remitted directly to the bank accounts of the bond holders by the assigned agent banks based on the lists of bond holders printed by TDCC.
e. Maintenance of Media Files and Back-Up of Data
After daily linkage operations, TDCC process the media files from participants, makes copy for the investors' data and store at different places.
f. Securities Borrowing and Lending
TDCC will conduct securities lending and borrowing operations for securities firms on the basis of the notification from TWSE.
(2) Print of Account Books
The participants should have customer up the account books to record the balance of the securities. The account books are processed via computers and handled by TDCC entrusted by participants. TDCC should print the detailed reports of trading and balance reports for the participants every day.
(3) Safekeeping of the Media
The participants should keep their account books and related reports for fifteen years as required by laws. To reduce the burden of the participants, TDCC offers the service of preserving the books of participants in media form. Participants that need a hardcopy of their account book may fill out a request form and TDCC will deliver the requested document to the participants. If an issuer asks to provide proof of long-term holding of its securities by a participant’s customer, TDCC can also provide such information based on the computer records.