Euroclear and TDCC launch ground-breaking offshore RMB service
Taipei and Brussels, 3 April 2014 – Euroclear Bank and the Taiwan Depository & Clearing Corporation (TDCC) have launched a new service allowing international investors to settle Taiwanese-issued RMB bonds (Formosa bonds) in TDCC. The service, the first of its kind, will allow settlement transactions to be routed from Euroclear Bank’s account with Citi to the local central securities depository, TDCC.
TDCC said: “Taiwan has the fastest developing RMB market in the Asian region with total market issuance reaching RMB 12.1 billion (USD 2 billion) in February 2014. We have been looking for a global partner with the agility, experience and infrastructure to match our growing needs and are delighted to be working with Euroclear Bank and Citi on this project. Making our Formosa bonds accessible to the greatest number of international investors, through Euroclear Bank, will enable us to achieve our strategic objective to expand and further internationalise Taiwan’s capital markets.”
Olivier Grimonpont, General Manager, Regional Head Asia-Pacific for Euroclear
Bank, said: “With the ever-growing importance of RMB as an internationally used currency, the offshore RMB market in Taiwan will only continue to expand. We are delighted to be working with TDCC and Citi on this groundbreaking project and look forward to helping Taiwan bring in additional foreign investment.”
David Russell, Citi Region Head for Securities Services in Asia Pacific, commented: “Our established network in Asia, and in particular Taiwan, has enabled this important co-operation with Euroclear Bank and TDCC to come to fruition. Through our account at TDCC, Euroclear Bank clients will be able to access all current and future Taiwanese RMB denominated bonds. We are very happy to be expanding our well-established professional relationship with both TDCC and the proven, open market infrastructure that is Euroclear Bank.”
Note to editors
Euroclear is one of the world’s largest providers of domestic and cross-border settlement and related services for bond, equity, ETF and mutual fund transactions.
Euroclear is a proven, resilient capital market infrastructure committed to delivering riskmitigation, automation and efficiency at scale for its global client franchise.
The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of USD 789 trillion in securities transactions in 2013, representing 170 million domestic and cross-border transactions, and held almost USD 33.3 trillion in assets for clients.
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Established in October 1989, Taiwan Depository and Clearing Corporation (TDCC) is an essential infrastructure serving Taiwan’s financial markets, providing registration, custody, securities settlement, book-entry transfer, issuer services and information services for equities, fixed income securities, mutual funds, etc. TDCC maintains 15,293,422 investor accounts under 2,257 participant accounts. The total market value of assets under custody for all instrulents was USD 1.2 trillion as of end 2013. The amount of its clearing and settlement for short-term bills amounted USD 1.87 trillion in 2013.
As a central securities depository (CSD) in Taiwan, TDCC has demonstrated the ability to deliver quality services and kept a steady growth of business while forging ahead with the competent authorities to create a secured and efficient market environment over the past 25 years. TDCC is also the sole registrar of dematerialised securities in Taiwan, and the goal of full securities dematerialisation was achieved on 29th July 2011.
In addition to providing post-trade services for Taiwan’s markets, TDCC has been connecting with international financial markets to keep pace with global development. TDCC conducts international business related to international bonds, offshore funds, and cross-border ETFs. In order to strengthen the competitiveness of Taiwan’s financial markets, TDCC continues to actively promote all types of cross-border business.
Further information: www.tdcc.com.tw
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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