ICB Bond and Bill Clearing and Settlement System is the new generation securities delivery operation solution which coordinates with the bank requirements of clearing and delivery for ticket deposit investors, and refers to the application system specification of Taiwan Depository & Clearing Corporation. The system provides clearing banks and investors for the dealing of various NTD and USD securities, including trading commercial paper (CP1), financing commercial paper (CP2), bank acceptance (BA), bank negotiable certificates of deposit (NCD), asset backed commercial paper (ABCP), etc., as well as the delivery, redemption, pledge and settlement operations of company bond and financial bond.
The architecture of ICB Bond and Bill Clearing and Settlement System includes: investors account management, primary market, secondary market, redemption, pledge settings/cancellations, and court attachment/release operations, etc. These functions are described as follows:
- Investor account management operations
Providing the functions of open securities and delivery payment deposit account to investors, to facilitate these investors to transact trading, delivery, pledge, and redemption operations for short-term securities transaction and delivery.
- Primary market operations
The operations include securities sales agency and distribution, etc.
- Secondary market operations
Including securities buyout and outright transactions, repurchase transactions, repurchase termination, delivery of entire batch (entire batch net amount delivery processing of same currency multiple deliveries between two objects for delivery, including ticket brokers and investors, ticket brokers and clearing and delivery bank, and between two ticket brokers), credit for load/debit for load, ticket deposit remittance and partial transfer of investor account securities.
- Redemption operations
Redemption funding, securities due date prompt/ non-prompt redemption, tickets refund.
- Pledge settings/cancellations operations
Setting of pledge (includes repurchase transaction), pledge cancellation, the collateral replacement operation before pledge right implementation and cash repay date.
- Court attachment/release operations
If investor's securities were seized, released by the court or succession of original investor account for some reason, the legal working procedure need to circle deposit or transfer to the court or return to investor's account for the ownership of securities registered by investor's account.
- Using browser as the user interface, with the features of simple and easy to operate
- Cross-platform tools and development languages, capable of fast development, maintenance and expansion
- Providing software version for centralized control
- Providing flexible development architecture, capable of meeting the demand of future systems
- Providing convenient transaction operation
- Computer connection automatic operation to increase the speed of transaction processing significantly
- Reducing manual working costs and errors to reduces the risks of damage, storage, forging
- Using collected registration for storage and account remittance operation to improve securities delivery efficiency
- Improving business operation benefits
- Increasing the income of investors account management fees and surcharges
- Expanding bank service items and tickets business operation synergy
- Enhancing the application efficiency of flowing funds
- Reducing the risks of transaction and delivery
- Protecting settlement delivery environment
- Improving the efficiency and safety of securities settlement delivery and custody operations
- Using the payment and tickets synchronic delivery mechanism (Delivery Versus Payment, DVP), to effectively reduce the delivery risk
- Centralized redemption to avoid risk of duplicate funding
- Bank of Taiwan
- Chang Hwa Bank
- Taishin Bank