Euroclear and the Korea Securities Depository (KSD) have signed a Memorandum of Understanding (MoU) as the basis to build a close co-operative relationship.
Under the MoU, KSD and Euroclear will explore how best to co-operate on securities settlement and related matters in supporting clients active in the Korean capital markets and in those markets covered by Euroclear.
The relationship aims at providing a more efficient post-trade infrastructure that will facilitate cross-border investment, as well as strengthen the risk mitigation capabilities of KSD and Euroclear for their respective clients.
The agreement outlines cross-company staff training in order to develop a better understanding and knowledge of the respective securities markets.
The MoU also covers the exchange of business model information, the potential application of market standards and a wide range of possible transaction-processing improvement opportunities.
“We are very pleased with this agreement and look forward to leveraging Euroclear’s experience in processing both domestic and cross-border transactions, and to sharing the resulting benefits with our clients,” says Soo-Hwa Lee, chairman and chief executive officer of KSD.
“Closer co-operation with Korea Securities Depository was a priority for us. Korea is an important market in the Asia-Pacific region and this agreement illustrates our commitment to the region, where we have operated consistently since 1987,” says Pierre Francotte, chief executive officer of Euroclear SA/NV. “Euroclear clients investing in domestic Korean securities, and Korean investors looking to trade and settle foreign securities, will benefit from this joint undertaking.”
Euroclear Bank recently announced its plan to launch a link with KSD towards the end of the year to service Korean securities. The service will include settlement, custody and related services for Korean Treasury Bonds (KTBs) and Monetary Stabilization Bonds (MSBs).
This MoU with KSD also expands Euroclear’s evolving long-term relationships with settlement infrastructure service providers in the BRICK countries (Brazil, Russia, India, China and Korea). Euroclear has previously signed Memoranda of Understanding with CSDs in Brazil, Russia, India and China.
D.C.