Important Measures in January 2007
PRESS RELEASE Release Date: February 14, 2007
Important Measures in January 2007
In line with the policy of promoting the liberalization, internationalization, and development of the foreign exchange market, the CBC announced the following measures in January 2007:
1.In preparation for combating money laundering, and strengthen the management of foreign currency bureaus, the CBC amended the Regulations Governing the Establishment and Administration of Foreign Currency Exchange Bureaus on January 25, 2007.
2.The CBC has opened the application for securities firms to do the foreign derivative business, related to equity bond and interest rate, from Jan. 26, 2007.
3.Approved ABN AMRO Bank to commence foreign exchange business through internet instructions.
4. Approved First Commercial Bank to commence internet banking business involving foreign currencies.
5.Approved MasterLink Securities Corp. to act as a single master agent for BSISA in offering and selling offshore funds in Taiwan.
6.Approved Franklin Templeton First Taiwan to act as offshore funds’ domestic trustee to manage the sale to specific clients privately.
7.Approved Hua Nan Commercial Bank, Taiwan Cooperative Bank and The Shanghai Commercial & Savings Bank to underwrite Formosa bonds.
8.Approved the following authorized banks to operate new foreign exchange derivatives business:
(1)UBS: FCY Interest Rate(including Bond Index)with CPPT(Constant-proportion Portfolio Technique).
(2) Bank of Panhsin , Taiwan Cooperative Bank:NTD/FCY CCS.
9.Allowed the following authorized banks to conduct foreign exchange derivatives business by notifying the CBC after the commencement of business without CBC objection:
(1)Hsinchu International Bank:FCY Structured products composed of FCY Time Deposits linked with FCY IRS, FCY Interest Rate Swaptions.
(2) ING BANK:NTD IRS linked with FCY IRS.
(3) Calyon Corporate and Investment Bank:FCY CCS, FCY Forward Interest Rate Agreements.
10.Approved 1 branch of Bank of Taiwan to operate full range of foreign exchange business. In addition, 1 branch of Taiwan Cooperative Bank was approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of January 2007, there were 1,153 authorized foreign exchange banks, including 1,090 domestic banks and 63 foreign banks.