Euroclear Bank and Korea Securities Depository sign CSD agreement
29 August 2023 South Korea
Image: stock.adobe.com/Kampon
Brussels-based international central securities depository (ICSD) Euroclear Bank has signed a CSD agreement with Korea Securities Depository (KSD) to open an omnibus account at the CSD.
The move builds on the progress made by the two depositories since they signed a Memorandum of Understanding (MoU) last year.
According to Euroclear Bank, the domestic market has made key advances in making Korean Treasury bonds (KTBs) Euroclearable. The Euroclearable link, which the Bank looks to launch in due course, will provide international investors with efficient post trade access to KTBs.
Soonho Lee, chairman and CEO of Korea Securities Depository, says: “I am convinced that the omnibus account will serve as a cornerstone for advancing the globalisation of the Korean capital market by making KTBs more liquid and actively utilised.
“We will continue the great work and make the best efforts to ensure thorough system development which will commence in due course.”
Peter Sneyers, CEO of Euroclear Bank, adds: “We are delighted to be taking this next step with the Korean market. We have been working together with the KSD, the ministry of economy and finance and the domestic regulators with a shared vision to provide a solution for international investors to access efficient and safe settlement of local Korean government bonds.
“Our link will allow KTBs to be eligible on our triparty platform. As a financial market infrastructure, we will continue to support and work with the market with a commitment to create an ecosystem for growth as we move closer to the launch of the Euroclearable link.”
The move builds on the progress made by the two depositories since they signed a Memorandum of Understanding (MoU) last year.
According to Euroclear Bank, the domestic market has made key advances in making Korean Treasury bonds (KTBs) Euroclearable. The Euroclearable link, which the Bank looks to launch in due course, will provide international investors with efficient post trade access to KTBs.
Soonho Lee, chairman and CEO of Korea Securities Depository, says: “I am convinced that the omnibus account will serve as a cornerstone for advancing the globalisation of the Korean capital market by making KTBs more liquid and actively utilised.
“We will continue the great work and make the best efforts to ensure thorough system development which will commence in due course.”
Peter Sneyers, CEO of Euroclear Bank, adds: “We are delighted to be taking this next step with the Korean market. We have been working together with the KSD, the ministry of economy and finance and the domestic regulators with a shared vision to provide a solution for international investors to access efficient and safe settlement of local Korean government bonds.
“Our link will allow KTBs to be eligible on our triparty platform. As a financial market infrastructure, we will continue to support and work with the market with a commitment to create an ecosystem for growth as we move closer to the launch of the Euroclearable link.”
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