Euroclear Bank, the Brussels based international central securities depository (ICSD), and the Korea Securities Depository (KSD) have partnered to open an omnibus account.
The domestic market has made advancements in making Korean Treasury Bonds (KTBs) Euroclearable. The Euroclearable link will allow international investors efficient, post trade access to KTBs.
The service launch is expected to contribute to providing offshore investors with the ease of market access and expanding the liquidity and utilisation of KTBs and MSBs.
Soonho Lee, chairman and CEO at KSD, says: "I am convinced that the omnibus account will serve as a cornerstone for advancing the globalisation of the Korean capital market by making KTBs more liquid and actively utilised. 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 comments: "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 tri-party 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.”
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