Market Link Guide – Taiwan
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/No | Remarks | |
| Settlement free of payment | Yes | |
| Settlement against payment | No | |
| Settlement against payment in central bank money account of CBL/CBL clients | 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 18 July 2023. 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 clients 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 clients to attach securities owned by such clients and credited to the Direct CSD Account. However, such creditor needs to prove that the relevant clients 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 clients 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. |