Taiwan Depository & Clearing Corporation (TDCC) has selected Citi Securities Services to provide global custody services as the former implements a new centralized custody platform in the market.

TDCC’s platform is being developed in accordance with an amendment by Taiwan’s Financial Supervisory Commission to improve asset safety for local investors holding overseas investments via local brokers.

Citi’s support of the platform, the bank says, leverages its experience in supporting financial market infrastructures to enhance the securities services ecosystem for investors.

In Taiwan, sub-brokerage is one of the fastest growing areas in the local financial market. Local brokers will hold clients’ overseas investments with the TDCC on the back of the new centralized custody platform. 

According to the Taiwan Securities Association, from January to May 2024, local sub-brokerage transactions totalled NT$2.9 trillion (US$89 billion), a year-on-year increase of more than 60% as retail investors’ interest in overseas investments continues to increase.

Citi will support investment flows on TDCC’s platform by leveraging its global custody network of over 100 markets, including its proprietary sub-custody network of 63 markets, which covers 95% of the world’s market capitalization.

“We have been providing cross-border custody services for foreign securities since 2015, with nearly NT$5 trillion or approximately US$153 billion in foreign securities under custody at present,” says Bing-huei Lin, TDCC’s chair. “Our goal is to ensure asset safety for local investors and create a standardized and automated operating environment in collaboration with Citi and other global custodians.”