Important Measures in November 2005
PRESS RELEASE Release Date: December 12, 2005
Important Measures in November 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 November 2005:
1. Approved Far Eastern Bank to commence foreign exchange business through internet instructions.
2. Approved Cathay United Bank to commence foreign exchange business through internet instructions.
3.Approved Bank of Panhsin to commence internet banking business involving foreign currencies.
4.Approved Standard Chartered Bank to offer Structured Products composed of NTD/FCY Cross Currency Swaps linked with NTD IRS, FCY IRS, FCY IRO and FCY Interest Rate Swaptions.
5.Approved the following Securities Firms to commence new foreign exchange derivatives business:
(1) KGI Securities Co., Ltd.: FCY IRS, FCY IRO, FCY Option on IRS and FCY Forward Rate Agreement.
(2) Capital Securities Co., Ltd.: FCY IRS, FCY IRO, FCY Option on IRS, FCY Forward Rate Agreement, FCY Bond Forward and FCY Bond Option.
(3) Polaris Securities Co., Ltd.: FCY IRS, FCY IRO, FCY Option on IRS, FCY Forward Rate Agreement, FCY Bond Forward and FCY Bond Option.
6.Approved Citibank Securities (Taiwan) Ltd. to commence buying or selling Foreign Bonds for clients.
7.Approved Taishin Securities Investment Trust Co., Ltd., Fubon Securities Investment Trust Co., Ltd., Grand Cathay Securities Investment Trust Co., Ltd., HSBC Investment (Taiwan) Ltd. and Sheng Hua Securities Investment Trust Co., Ltd. to handle public offer or private placement of funds in foreign currencies.
8.Approved PCA Securities Investment Trust Co., Ltd., and Citigroup Global Markets Inc., Taipei Branch to handle private placement of offshore funds on behalf of clients.
9.Authorized 5 branches of 2 domestic banks to operate the foreign exchange business. In addition, 8 non-authorized foreign exchange banks and 108 post offices were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of November 2005, there were 1,128 authorized foreign exchange banks, including 1,061 domestic banks and 67 foreign banks.