Important Measures in August 2005
PRESS RELEASE Release Date: September 12, 2005
Important Measures in August 2005
In line with the policy of promoting the liberalization, internationalization, and development of the foreign exchange market, the Central Bank of China (CBC) announced the following measures in August 2005:
1.Banks and securities firms can apply for approval to conduct wealth management, services involving foreign exchange transactions effective Aug. 26.
2.Approved the following authorized banks to operate new foreign exchange derivatives business:
(1)Chinatrust Commercial Bank: Foreign Exchange Credit Default Swap and Foreign Exchange Credit Default Option.
(2)UBS, Taipei Branch: Structured products composed with NTD/FCY CCS, NTD IRS, FCY IRS and FCY IRO.
(3)Australia and New Zealand Banking Group Limited, Taipei Branch: NTD Exchange Rate Option.
(4) Central Trust of China: Structured products composed with FCY Time Deposit linked with FCY Option.
(5) Taishin International Bank: Foreign Exchange Credit Default Swap.
(6)Taipei Fubon Commercial Bank: Structured products composed with NTD/FCY CCS and FCY Option.
(7) Taiwan Cooperative Bank: NTD/FCY CCS.
(8)Barclays Bank: Non-Delivery NTD Foreign Exchange Forward (NDF).
3.The following authorized bank began conducting foreign exchange derivatives business by notifying the CBC after the commencement of business:
(1)Calyon Corporate and Investment Bank, Taipei Branch: (a) Structured products composed with FCY IRS, FCY IRO and FCY Interest Rate Swaptions. (b) Structured products composed with FCY IRS and FCY IRO.
(2)Ta Chong Bank: Structured products composed with FCY Time Deposit linked with FCY Commodity Options.
(3)First Commercial Bank: Structured products composed with FCY Time Deposit linked with FCY Commodity Options.
(4)Bank of Panhsin: Structured products composed with FCY Time Deposit linked with FCY Options.
(5)Taipei Fubon Commercial Bank: FCY Margin Trading.
4.Authorized 4 branches of Chinatrust Commercial Bank to operate the foreign exchange business. In addition, 2 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of August 2005, there were 1,119 authorized foreign exchange banks, including 1,052 domestic banks and 67 foreign banks.