Important Measures in October 2006
PRESS RELEASE Release Date: November 15, 2006
Important Measures in October 2006
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 October 2006:
1.Approved the following authorized banks to operate new foreign exchange derivatives business:
(1)Taiwan Business Bank：NTD/FCY Cross Currency Swaps.
(2)JPMorgan Chase Bank, Taipei Branch：Exotic Credit Default Swaps(CDS)including Basket CDS, First to Default Swaps, Nth to Default Swaps and related Structured Basket CDS (within a boundary credit risk exposure).
2.Allowed Australia and New Zealand Bank, Taipei Branch to conduct"Dual Currency Account composed of FCY Options linked with FCY Time Deposits" by notifying the CBC after the commencement of business without CBC's objection.
3.Approved MasterLink Securities to underwrite Formosa bonds.
4.Approved Kingston Investment Management to act as offshore funds’ domestic trustee to manage the sale to specific clients privately.
5.Approved Dah Chang Securities to handle consigned trading of foreign securities.
6.Authorized 2 branches of 2 banking enterprises to operate the full range of foreign exchange business. In addition, 1 branch of E. Sun Commercial Bank was approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of October 2006, there were 1,148 authorized foreign exchange banks, including 1,084 domestic banks and 64 foreign banks.