Market Link Guide - Taiwan

30.03.2021

Key features

CSD link as defined under CSDRa

Yes

Type of link

Direct operated

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

CSD

Account operator

Name

Taiwan Depository & Clearing Corporation (TDCC).

Deutsche Bank AG, Taipei branch

FATCA GIIN

U5357L.99999.SL.158

Y0M5J7.00000.BR.158

LEI

5493002M0I148C9XLF52

25490016G0WR60ANOK04

Country of incorporation

Taiwan

Germany

Account type

Participant account

Mirror account

Legal Account name/holder

Clearstream Banking S.A.

Clearstream Banking S.A.

Operational arrangements

Yes/NoRemarks
Settlement free of payment

Yes

Settlement against payment

No

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

Not available

No DVP settlement

Bridge settlement

No

 
Shaping facility

No

 
Partial settlement

No

Except when the local CSD imposes the partial delivery of securities.

Settlement penalty fees

No

 
Pre-matching

Yes

Only for matched trades, subject to availability of a trade execution report from the broker.

Back-to-back processing

No

 
Allegements

No

 
Automatic compensation

No

 
Registered securities

Yes

Registration takes place automatically upon settlement.

Multi Market Securities

No

 
Lending and borrowing

No

 
Proxy voting

No

There is typically no meeting set up for international bonds. Only on very rare occasions will there be a meeting.

Investment Funds

No

 
Liquidity Hub Connect

No

 
Sale and purchase of rights

No

 
Repo services

No

 
Market restrictions

No

 
FTT

No

 
Daily reconciliation

Yes

 
Moment of entry of instructions

The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.

Irrevocability of instructions

All trades in TWSE and TPEx are irrevocable.

Finality of instructions

All 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 23 March 2021. 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.

 

CSD

No insolvency proceedings against the account operator or the CSD

Confirmed

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  

Confirmed

Recognition as direct CSD account-holder

Confirmed

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

Confirmed

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 years

Confirmed

Settlement finality in case of insolvency

Local laws and regulations do not provide for finality.