Market Link Guide - Taiwan


Key features

CSD link as defined under CSDRa


Type of link

Direct operated

a. CSD Regulation (EU) No 909/2014 art. 2 (29)


Account operator


Taiwan Depository & Clearing Corporation (TDCC).

Deutsche Bank AG, Taipei branch







Country of incorporation



Account type

Participant account

Mirror account

Legal Account name / holder

Clearstream Banking SA

Clearstream Banking SA

Operational arrangements

Settlement free of paymentYes 
Settlement against paymentNo 
Settlement against payment in central bank money account of CBL/CBL customers

Not available

No DVP settlement
Bridge settlementNo 
Shaping facilityNo 
Partial settlementNoExcept when the local CSD imposes the partial delivery of securities.
Settlement penalty feesNo 
Pre-matchingYesOnly for matched trades, subject to availability of a trade execution report from the broker.
Back-to-back processingNo 
Automatic compensationNo 
Registered securitiesYesRegistration takes place automatically upon settlement.
Multi Market SecuritiesNo 
Lending and borrowingNo 
Proxy votingNoThere is typically no meeting set up for international bonds. Only on very rare occasions will there be a meeting.
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesNo 
Market restrictionsNo 
Daily reconciliationYes

Moment of entry of instructionsThe CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.
Irrevocability of instructionsAll trades in TWSE and TPEx are irrevocable.
Finality of instructionsAll trades in TWSE's and TPEx’s markets are locked-in. The settlement of funds and securities from securities firms to TWSE/TPEx is final and irrevocable.

Legal arrangements

The below section is based on the legal opinion that was issued on
15 August 2019. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.



No insolvency proceedings against the account operator or the CSD


Liability for negligence

The laws of Republic of China (ROC) do not expressly provide for the CSD's liability for negligence. Thus, actions brought against CSD for negligence of CSD would be based on breach of contract.

Book-entry regime with in rem rights

Local law does not clearly define the nature of CBL's right akin to a right in rem.

No entitlement of the account operator/CSD  


Recognition as direct CSD account-holder


Recognition of nominee concept

The regulations governing the operations of CSD do not expressly characterise the Direct CSD Account as nominee account. However, although the Direct CSD Account is opened in the name of CBL, the joint ownership rights of customers would be recognised under general concepts of ROC law.

No right of retention to the account operator/CSD

Statutory liens or right of retention as may arise from sums due to the account operator or the CSD for such claims as may arise from the purchase, administration or safe custody of these securities. 

Segregation of assets at the CSD

There is no express legal or regulatory requirement that the CSD segregates its own assets from the assets held for its account holders. However, under the agreement with the CSD, the CSD is contractually obligated to do so.

No right of use


No upper-tier attachments

There is no express prohibition under ROC laws and regulations on creditors of CBL's customers to attach securities owned by such customers and credited to the Direct CSD Account. However, such creditor needs to prove that the relevant customers are entitled to the relevant securities.

Insolvency of account operator/CSD with no impact on CBL's rights 

Account Operator: the account operator is not subject to ROC law and insolvecy of the account operator would be determined in accordance with the laws governing the account operator.

CSD: under ROC Bankruptcy Law, CBL's right to act on behalf of its customers to assert legal title over and to recover the securities held in the Direct CSD Account may be exercised during the bankruptcy proceeding in accordance with the procedures set by the relevant bankrupt administrator.

Shortfall pro-rated among holders

There is no express provision under the CSD Rules and applicable laws and regulations that address the handling of shortfall.

Record keeping period of at least 10 yearsConfirmed

Settlement finality in case of insolvency

Local laws and regulations do not provide for finality.