Euroclear Bank, the Brussels based international central securities depository (ICSD) and the Korea Securities Depository (KSD) announced the signing of a CSD agreement to open an omnibus account.
Building on the significant progress made since Euroclear Bank and the KSD signed a Memorandum of Understanding late last year, the domestic market has made key advancements in making Korean Treasury bonds (KTBs) Euroclearable. The Euroclearable link will allow international investors efficient, post trade access to KTBs.
“I am convinced that the omnibus account will serve as a cornerstone for advancing the globalization of the Korean capital market by making KTBs more liquid and actively utilized,” said Soonho Lee, chairman and chief exec of Korea Securities Depository, in a statement. “We will continue the great work and make the best efforts to ensure thorough system development which will commence in due course.”
Peter Sneyers, CEO at Euroclear Bank, said in a statement: “We have been working together with the KSD, the Ministry of Economy and Finance and the domestic regulators with a shared vision to provide a solution for international investors to access efficient and safe settlement of local Korean government bonds. Our link will also allow KTBs to be eligible on our triparty platform. As a Financial Market Infrastructure, we will continue to support and work with the market with a commitment to create an ecosystem for growth as we move closer to the launch of the Euroclearable link.”