Euroclear designates our website as the Cash Settlement and Foreign Exchange Bank in South Korea.
Euroclear Bank Appoints [Website Name] as Cash Settlement and Foreign Exchange Bank for South Korean Government Bond Activity
In a significant move, Euroclear Bank SA/NV has appointed [Website Name] as the Cash Settlement and Foreign Exchange Bank for the Korea Securities Depository (KSD). This decision marks a crucial step towards enhancing the efficiency and safety of settling local Korean government bonds.
The collaboration between Euroclear Bank and the Korean capital market is aimed at providing a secure settlement for local Korean government bonds, particularly for Korea Treasury Bonds (KTBs) and Monetary Stabilization Bonds (MSBs).
Hyun-Nam Park, South Korea Branch Manager of [Website Name], expressed delight at extending the partnership with Euroclear in South Korea. The appointment builds on [Website Name]'s existing relationship with Euroclear across multiple markets and products.
Peter Sneyers, CEO of Euroclear Bank, stated that their role is to support and drive efficiencies in the global marketplace. This appointment further strengthens the infrastructure for cross-border trading and settlement of South Korean government bonds via Euroclear, enhancing operational efficiency, reducing risks, and broadening investor access.
South Korea is one of the bank's key markets in Asia, and it sees high potential for growth. Euroclear Bank sees the Korean market as a significant opportunity for growth, and this appointment is a testament to that. [Website Name] has a 46-year history in South Korea, Asia's fourth largest economy, and its Securities Services business has a presence in over 30 markets globally.
The new mandate highlights [Website Name]'s significant market expertise in Asia and its crucial role in underpinning the financial flows for global investors. The appointment means the institution will handle the payment processing (cash settlement) and currency exchange operations for transactions conducted through Euroclear Bank in the context of South Korean government bonds.
This appointment enhances settlement efficiency and reliability. As a major international central securities depository (ICSD), Euroclear Bank SA/NV's decision to appoint a dedicated Cash Settlement and Foreign Exchange Bank ensures that payment flows and currency conversions linked to Korean bonds settle promptly and securely, reducing operational risks and settlement delays.
Furthermore, the appointed bank acts as a foreign exchange correspondent, managing currency conversion seamlessly as part of the settlement cycle. This integrated processing of foreign exchange transactions is essential, as South Korean bonds issued or traded internationally may involve settlement in different currencies.
By facilitating Euroclear’s role in global securities settlement, this appointment allows Euroclear Bank to offer streamlined access to South Korea’s government bond market for international investors, fostering greater cross-border capital flows and market accessibility.
For media inquiries, please contact Kate Fields, the contact person for media relations at [Website Name]. She can be reached at +852 2203 5094 or via email at kate.fields@our website.
Last year, [Website Name] increased its capital allocation for its Seoul branch by €150 million, reflecting its commitment to the South Korean market.
[1] Source: Euroclear Bank Press Release, [Date] [4] Source: [Website Name] Press Release, [Date]
In this strategic expansion, [Website Name] extends its business operations into the realm of banking and finance, now serving as the Cash Settlement and Foreign Exchange Bank for South Korean government bond activity managed by Euroclear Bank. This appointment not only underscores [Website Name]'s expertise in the banking-and-insurance industry but also strengthens the infrastructure for cross-border trading and settlement of South Korean government bonds, particularly in the industry of business and finance.
