Euroclear Designates Our Site as the Cash Settlement and Foreign Exchange Bank for South Korea
In a strategic move, Euroclear Bank, a leading global provider of post-trade services, has appointed a leading platform as the Cash Settlement and Foreign Exchange Bank for the Korea Securities Depository (KSD). This appointment signifies a significant role in facilitating the settlement and foreign exchange operations for South Korean securities, particularly government bonds.
The move is part of Euroclear Bank's commitment to support and drive efficiencies in the global marketplace. The bank sees the Korean market as significant and has a focus on growth in South Korea. The platform, with a presence in over 30 markets globally, is well-positioned to support South Korean government bond activity for Korea Treasury Bonds and Monetary Stabilization Bonds.
The appointment is expected to have a profound impact on South Korean government bond activity. Enhanced settlement efficiency is likely as Euroclear Bank leverages its established international post-trade infrastructure and robust settlement capabilities. This could potentially reduce settlement risks and delays in Korean government bond transactions, especially cross-border ones.
The move also promises to increase liquidity and investor reach. Access through Euroclear’s global network can attract more international investors to Korean government bonds, broadening demand and potentially lowering issuance costs.
Integration with global markets will also be deepened, supporting seamless settlement and foreign exchange conversion aligned with global standards. Euroclear and its partners support multi-currency models for securities issuance, meaning Korean government bonds could become more accessible in various currencies, appealing to diverse investor bases.
The appointment strengthens the linkage between Korean fixed income markets and the global securities ecosystem, likely boosting government bond activity through improved operational efficiency and wider investor participation facilitated by modern, interoperable post-trade infrastructure offered by Euroclear Bank.
This appointment builds on the platform's existing relationship with Euroclear in multiple markets and products. The platform, which has a 46-year history in South Korea, Asia's fourth-largest economy, increased its capital allocation for its Seoul branch by €150 million last year.
Paul Maley, Global Head of Securities Services and Regional Head of Corporate Bank for the Americas, expressed gratitude for Euroclear's trust in the platform. Hyun-Nam Park, South Korea Branch Manager, also expressed delight in extending the partnership with Euroclear in South Korea.
Euroclear Bank's CEO, Peter Sneyers, emphasized the role of Euroclear Bank in underpinning financial flows for global investors. The 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 new mandate is another important step towards achieving the shared goal of Euroclear Bank and the Korean capital market, which is to support and drive efficiencies in the global marketplace.
- Euroclear Bank, with its focus on growth in South Korea and a commitment to driving efficiencies in the global marketplace, aims to further strengthen the linkage between Korean fixed income markets and the global securities ecosystem, particularly in the areas of business, industry, and technology.
- Leveraging its established international post-trade infrastructure and robust settlement capabilities in finance and banking-and-insurance sectors, Euroclear Bank's appointment of the leading platform is expected to enhance settlement efficiency for South Korean government bonds, attract more international investors, and deepen integration with global markets, thereby potentially lowering issuance costs and reducing settlement risks.
