Taiwan’s central securities depository, the Taiwanese Central Securities Depository (TCSD), has provided Clearstream with a direct settlement link for Taiwan’s international bond market.
Clearstream is a post-trade services provider owned by the Deutsche Börse Group. It is an international central securities depository headquartered in Luxembourg.
The firm becomes the first foreign securities depository foreign to be a participant of the TCSD. The settlement link, to be operated by Deutsche Bank’s Taipei Branch, is scheduled for completion during 2014, and will offer settlement and custody services for foreign currency denominated bonds.
The opening up of the business for international participants comes in the wake of measures from the Taiwanese regulators that allow foreign investors to invest in the Taiwanese market more efficiently. This includes the renminbi-denominated ‘Formosa bond’, which constitutes one part of China’s ambitions to internationalise its currency.
TCSD added that it plans to continue improving standardisation and automation, in order to allow foreign firms to invest and settle trades in the Taiwanese bond market.