Clearstream has opened an account with the Korean Securities Depository (KSD) to provide settlement and custody services for foreign investors intending to hold Korean government debt instruments, including Korean Treasury bonds (KTB) and Monetary Stabilization Bonds (MSB).
Having an omnibus account directly with KSD, would facilitate the post trade processes for non-Korean investors investing in Korean government debt instruments like KTBs and MSBs. It is expected to provide liquidity to the government bond market as well as facilitate cross-border investments.
Soo-Hwa Lee, Chairman and CEO of KSD, said: “The linkage between Clearstream and KSD will play a pivotal role in facilitating foreign investment in the Korean Bond Market. At the same time I hope and believe our bilateral cooperation will remarkably boost foreign investment in the Korean Bond Market, serving its globalization.”
Jeffrey Tessler, CEO of Clearstream, said: “This is an important step forward for the Korean bond market as well as for Clearstream, who has always recognized Korea as being one of its most important markets in Asia. This is yet another illustration of Clearstream’s commitment to servicing participants in inbound and outbound investments in the Korean market and, generally, in the Asia-Pacific region.”
Luxembourg-based Clearstream, a supplier of post-trading services, is an International Central Securities Depository part of Deutsche Borse Group.
