Important Measures in July 2006
PRESS RELEASE Release Date: August 11, 2006
Important Measures in July 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 July 2006:
1.The CBC amended the text of "Directions for Banking Enterprises While Assisting Customers to Declare Foreign Exchange Receipts and Disbursements or Transactions" on July 7, 2006 in line with the deregulation of foreign exchange settlements and development of futures transactions denominated in foreign currencies traded in the domestic market.
2.Approved Wells Fargo Bank, Taipei Branch to commence foreign exchange business through internet instructions.
3. Approved Taiwan Business Bank to commence internet banking business involving foreign currencies.
4.Allowed the following authorized banks to conduct foreign exchange derivatives business by notifying the CBC after the commencement of business without CBC objection:
(1) China Development Industrial Bank:Structured products composed of FCY Deposits linked with Commodity Options, structured products composed of FCY Time Deposits linked with FCY IRS, FCY IRO and FCY Interest Rate Swaptions, structured products composed of NTD Deposits linked with FCY Options.
(2)JPMorgan Chase Bank, Taipei Branch:Foreign Exchange Credit Default Swaps.
(3)BNP Paribas, Taipei Branch:FX Structured products composed of NTD IRO linked with FCY IRO.
5.Approved the following single master agents for offshore funds:
(1) Fidelity Securities Firm acting as a single master agent for Fidelity Investments Distributors, Bermuda in offering and selling offshore funds in Taiwan.
(2) JFAM Securities Taiwan Ltd., acting as a single master agent for JF Funds Ltd., JF India Management Ltd. and JP Morgan Asset Management (Europe) in offering and selling offshore funds in Taiwan.
(3) Franklin Templeton Investments Consulting Corp. acting as a single master agent for Franklin Advisory Services, LLC, Franklin Investment Advisory Services, LLC, Templeton Global Advisors Ltd., Templeton Investment Counsel, LLC, Franklin Templeton Investment Management Ltd. and Templeton Asset Management Ltd. in offering and selling offshore funds in Taiwan.
(4) First Global Investment Trust Company Ltd. acting as a single master agent for Mellon Global Management Limited in offering and selling offshore funds in Taiwan.
(5) FarEastern Alliance Investment Trust Consulting Corp. acting as a single master agent for Alliance Bernstein L. in offering and selling offshore funds in Taiwan.
(6) UBS Securities Investment Trust Corp. acting as a single master agent for UBS (Lux) in offering and selling offshore funds in Taiwan.
(7) Legg Mason Investment Consulting Corp. Ltd. acting as a single master agent for Legg mason Investment (Luxembourg) S.A. and Legg Mason Investments (Ireland) Limited in offering and selling offshore funds in Taiwan.
6.Approved GreTai Securities Market to provide foreign currency securities clearing services through an electronic platform and to apply to authorized banks for foreign currency loans.
7.Authorized 7 branches of 2 banking enterprises to operate the full range of foreign exchange business. In addition, 4 branches of 3 banking enterprises were approved to sell/buy foreign currency banknotes and traveler’s checks. As of the end of July 2006, there were 1,140 authorized foreign exchange banks, including 1,076 domestic banks and 64 foreign banks.