Clearstream significantly advanced its global market access capabilities by sharing a direct link to South Korea through the Korea Securities Depository (KSD).
This innovative initiative creates a smooth process for clients to handle and securely manage Korean government bonds like Korean Treasury Bonds (KTBs) and Monetary Stabilisation Bonds (MSBs) using Clearstream’s omnibus account system. Moreover, by integrating this innovative framework, Clearstream enables its clients to manage these assets efficiently within their existing accounts, eliminating the need for separate local custodian arrangements in South Korea.
A collaborative effort to align operational processes with international standards facilitated the development of this cross-border link. Moreover, this includes an agency agreement signed between Clearstream and the Korean CSD in August 2023, paving the way for streamlined transactions and enhanced market access.
Clearstream Launches Direct Link to South Korea
Clearstream’s offering goes beyond simplifying custody arrangements. It provides a comprehensive suite of value-added services, including collateral management solutions like triparty repo and pledge services. These services also cater to the diverse needs of institutional investors and offer efficient capital management solutions.
Furthermore, Clearstream’s FX services will support transactions denominated in Korean Won (KRW), further enhancing the operational flexibility and cost-efficiency for investors engaged in the Korean market. This capability allows investors to seamlessly manage currency risk associated with their Korean government bond investments within Clearstream’s integrated platform.
This strategic milestone underscores Clearstream’s commitment to fostering greater accessibility and efficiency in global capital markets. By eliminating barriers to entry and enhancing operational efficiencies, Clearstream continues to position itself as a preferred partner for international investors seeking robust post-trade solutions.
The introduction of this direct link signifies a technological achievement and a pivotal step towards expanding Clearstream’s footprint in the Asia-Pacific region. As global financial markets evolve, Clearstream remains at the forefront, empowering clients with enhanced connectivity and operational agility in accessing Korean government bonds.
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