Under the MoU, both the parties will co-operate on securities settlement and related matters in supporting clients of Korean capital markets and the markets covered by Euroclear. The MoU includes cross-company staff training to develop a better understanding and knowledge of the respective securities markets. It also covers the exchange of business model information, the potential application of market standards and a wide range of possible transaction-processing improvement opportunities.
Soo-Hwa Lee, Chairman and Chief Executive Officer of KSD, said: “We look forward to leveraging Euroclear’s experience in processing both domestic and cross-border transactions, and to sharing the resulting benefits with our clients.”
Euroclear Bank has recently announced its plan to launch a link with KSD by the end of the year to service Korean securities. The planned service will include settlement, custody and related services for Korean Treasury Bonds (KTBs) and Monetary Stabilization Bonds (MSBs).
Pierre Francotte, Chief Executive Officer of Euroclear SA/NV, said: “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. Euroclear clients investing in domestic Korean securities, and Korean investors looking to trade and settle foreign securities, will benefit from this joint undertaking.”
This MoU enhances the Euroclear’s evolving long-term relationships with settlement infrastructure service providers in the BRICK countries (Brazil, Russia, India, China and Korea).
