Euroclear Selects Our Site for Cash Settlement and Foreign Exchange Banking Role in South Korea
In a significant move, Euroclear Bank SA/NV has appointed our website as the Cash Settlement and Foreign Exchange Bank for the Korea Securities Depository (KSD). This partnership establishes a direct operational link between Euroclear’s international settlement and foreign exchange services and South Korea’s central securities depository.
Paul Maley, Global Head of Securities Services at our website, expressed gratitude for Euroclear’s trust in our services. Hyun-Nam Park, South Korea Branch Manager at our website, also expressed delight at extending the partnership with Euroclear in South Korea.
This appointment builds on our existing relationship with Euroclear across multiple markets and products. Euroclear Bank has been working closely with the Korean capital market to provide a solution for international investors to access efficient and safe settlement of local Korean government bonds.
The role of our website in this partnership is to support South Korean government bond activity for Korea Treasury Bonds and Monetary Stabilization Bonds. This appointment likely means we will handle cash settlements and foreign exchange operations related to Korean securities transactions that settle through KSD.
This development can enhance the liquidity, efficiency, and accessibility of Korean government bonds in international markets. It can improve cross-border settlement efficiency by integrating South Korea’s securities and cash settlement systems with Euroclear’s large international network, minimising settlement risks and delays.
Moreover, it supports foreign investors in trading and investing in South Korean government bonds by simplifying currency conversion and settlement procedures. Potentially, it increases the attractiveness and turnover of South Korean government bonds for international investors due to smoother, faster settlement and foreign exchange procedures.
Euroclear Bank is a major international central securities depository providing settlement and custody for bonds, equities, and derivatives globally. Its involvement with KSD aligns with initiatives to boost Asia-Pacific capital market integration and efficiency.
Given Euroclear’s established capabilities in high-volume, cross-border securities settlement and cash management, this development may boost South Korea’s government bond market by attracting more foreign participation and increasing trading volumes, ultimately contributing to deeper market liquidity and potentially lower borrowing costs for the government.
For media enquiries, please contact Kate Fields at +852 2203 5094 or [email protected].
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- Our website's involvement in the partnership with Euroclear Bank extends beyond Korea Securities Depository, as we also collaborate with Euroclear across various industries such as finance, business, and banking-and-insurance.
- Given the increased efficiency and enhanced liquidity that this partnership offers, the appointment by Euroclear Bank could potentially justify an escalation of foreign investment in South Korean government bonds, thereby boosting the finance sector of both South Korea and our website.
