Cross-Border Distribution of UCITS

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2011

CHALLENGES & OPPORTUNITIES

todians) and those on the sell side (transfer agents and fund houses) 52 . It should be noted that the CMU is only an order routing system at the time being, no settlement process is available. > Besides, in February 2010, Korea Securities Depository (KSD) – the transfer agent for all Korean domiciled investment funds connecting to local distributors - and Euroclear Bank signed a bilateral agreement whereby KSD will establish a link to Euroclear Bank’s Fund- Settle platform by the third quarter of 2011, adopting this platform as part of its fund pro- cessing infrastructure. The link with FundSettle will enable Korean investors to use KSD as the centralised access point to invest in international funds 53 . > Euroclear Bank also works to help improve fund distribution in Taiwan. Together with Dimerco Data System Corporation, they have developed a low-cost solution to provide seamless, automated access to FundSettle through local back-office applications 54 .

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52 Source: Hong Kong Monetary Authority, “The CMU fund order routing and settlement service” – HKMA quaterly bulletin, September 2009 53 Source : Asset Management News, “Korea Securities Depository connects to Euroclear Bank’s FundSettle platform”, 17 February 2010 54 Source : Euroclear, Focus FundSettle, “Supporting Asia’s funds markets”, Issue n°15 June 2010

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