Euroclear Bank has announced its plans to launch a link with Korea Securities Depository to offer settlement, custody and related services for Korean Treasury Bonds and Monetary Stabilisation Bonds.
For implementation towards the end of 2009, the project is part of Euroclear Bank’s commitment to serve the Asia-Pacific region’s interests internationally.
According to Euroclear Bank, the Korea Securities Depository (KSD) link also signifies the bank’s market coverage and long-term relationships with settlement infrastructure service providers in the Brazil, Russia, India and China. Euroclear Bank has signed memorandums of understanding with central securities depositories in Brazil, Russia, India and China.
Kwan-Rae Min, director of global securities services team at KSD, said: The Korean government is planning to issue Korean Treasury Bonds (KTBs) totaling more than E45 billion by the end of 2009. If the National Assembly approves the revised law to exempt foreign investors in KTBs and Monetary Stabilisation Bonds from tax on interest and capital gains, the Euroclear Bank link with KSD will help foreign investors invest in these securities. Hence, it will promote liquidity, as well as efficiency, in the government bond market.
Philippe Dirckx, general manager and regional head of Euroclear Bank’s Asia-Pacific representative offices, said: With our well-established Asia-Pacific operations centre based in Hong Kong, we are uniquely placed to help local and foreign clients with their post-trade needs. Korean and other local Asia-Pacific language skills and our ability to quickly and efficiently gather and report business-critical information on Asian securities is fostering new benchmarks in cross-border, post-trade service quality for Asia-Pacific securities transactions.
