Next Steps for ASEAN+3 Central Securities Depository and Real
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10101011010101010110101010101001011101010101010010111010101010101010010111001010101010110101010101 1110101010101010100101110010101010101110010111010101101010110101010101101010110101010101101010110 10101011010101010110101010010111010101010101010010111001010101010111001011101010101010101001011100101010101011 Next Steps for ASEAN+3 Central Securities Depository and Real-Time Gross Settlement Linkages 1001011100101010101011100101110101010101010110010111001010101010111001011101010101010101 A Progress Report of the Cross-Border Settlement Infrastructure Forum 10101011010101101010101011011010101101010110101010101101101010110101011010101010110110101011 This report from the Cross-Border Settlement Infrastructure Forum (CSIF) provides an update on progress toward the establishment of a regional settlement intermediary (RSI) to support investment and more 1011010101010110110101011011011010101010110110101011011011010101010110110101011011011010101010110110 integrated bond markets among ASEAN+3 economies. The proposed RSI is to be based on bilateral links 0010101011011010101101101101010101011011011011011010101010110110010110110101011011011010101010110110 between national central securities depositories and central banks’ real-time gross settlement systems. This model can realize cross-border delivery versus payment settlement to enable safe and efficient 010101011011010101101101101010101011011001010101101101010110110110101010101101100101010110110101011011011010101010110110 cross-border financial transactions. The report also highlights emerging trends and challenges in cross-border 10110110101011011011010101101101010110110110101011011010101101101101010110110101011011011010 financial transactions and sets out next steps in establishing an RSI. 01010110110110101011011010101101100101011011011010101101101010110110010101101101101010110110101 1101101010110110010101101101101101010110110010101101101101101010110110010101101100110110 About the Cross-Border Settlement Infrastructure Forum 110110101011011001010110110110110101011011110110101011011001010110110110110101011011001010110110110110101011011 The Cross-Border Settlement Infrastructure Forum is composed of the central banks and central securities 101101101010110110010101101101101010111011011010101101100101011011011010101110110110101011011001010110110110101011 depositories of the Association of Southeast Asian Nations and Japan, the People’s Republic of China, and the 10101110110110101011011001101011101101101010110110011010111011011010101101100110101110110110101011011001 Republic of Korea—known collectively as ASEAN+3. The CSIF is mandated to facilitate discussions to improve cross-border bond and cash settlement infrastructure in the ASEAN+3 region, including the possibility of 110101011011001101011101101101010110110011010101101100110101110110110101011011001101010110110011010111011011010101101100 establishing a regional settlement intermediary. The Asian Development Bank acts as secretariat to the CSIF. 1100110101011011001101011101101100110101011011001101011101101100110101011011001101011101101100110101011011001101011101 10011010111011011001101010110110011010111011001101011101101100110101011011001101011101 011001101011101101100110101011011001101011011001101011101101100110101011011001101011011001101011101101100110101011011001101011 1100110101110110110011001101011101101100110011010111011011001100110101110110110011001101011101101100 About the Asian Development Bank 10101011011001101011011001101011101101010101101100110101101100110101110110101010110110011010110110011010111011NEXT STEPS FOR 0 ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, 0110110011010111011001101100110101110110011011001101011101100110110011010111011001101100110101110110 while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members 11001101011011001101011101101010101100110101101100110101110110101010110011010110110011010111011010101011001 —49 from the region. Its main instruments for helping its developing member countries are policy dialogue, ASEAN+3 CENTRAL SECURITIES loans, equity investments, guarantees, grants, and technical assistance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rogress Report of the Cross-Border Settlement 1 01101010101101100110101011010101011011001101010110101010110110011010101101010101101100110101 1011101101010101101101110110101010110110111011010101011011011101101010101101101110110101010110Infrastructure Forum 1 010110011010110110010110011010110110010110011010110110010110011010110110010110011010110110JULY 2020 001101011011001011001101011011000110101101100101100110101101100011010110110010110011010110110 101100110101101101011001101011011010110011010110110101100110101101101011001101011011010110011010110110 1011010110011010110110101100101101011001101011011010110010110101100110101101101011001011010110011010110110101100 0101101101011001011010110010110110101100101101011001011011010110010110101100101101101011001011010110 101100101101011001101101100101101011001101101100101101011001101101100101101011001101101100101101011001101 AsiAn Development BAnk 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK www.adb.org NEXT STEPS FOR ASEAN+3 CENTRAL SECURITIES DEPOSITORY AND REAL-TIME GROSS SETTLEMENT LINKAGES A Progress Report of the Cross-Border Settlement Infrastructure Forum JULY 2020 ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2020 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 8632 4444; Fax +63 2 8636 2444 www.adb.org Some rights reserved. Published in 2020. ISBN 978-92-9262-272-5 (print); 978-92-9262-273-2 (electronic); 978-92-9262-274-9 (ebook) Publication Stock No. TCS200193-2 DOI: http://dx.doi.org/10.22617/TCS200193-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “economy” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Notes: ADB recognizes "China" as the People's Republic of China; “Hong Kong” as Hong Kong, China; “Korea” as the Republic of Korea; and “Vietnam” as Viet Nam. In this report, international standards for naming conventions—International Organization for Standardization (ISO) 3166 for country codes and ISO 4217 for currency codes—are used to reflect the discussions of the ASEAN+3 Bond Market Forum to promote and support implementation of international standards in financial transactions in the region. ASEAN+3 comprises the Association of Southeast Asian Nations (ASEAN) plus the People’s Republic of China, Japan, and the Republic of Korea. The economies of ASEAN+3 as defined in ISO 3166 include Brunei Darussalam (BN; BRN); Cambodia (KH; KHM); the People’s Republic of China (CN; CHN); Hong Kong, China (HK; HKG); Indonesia (ID; IDN); Japan (JP; JPN); the Republic of Korea (KR; KOR); the Lao People’s Democratic Republic (LA; LAO); Malaysia (MY; MYS); Myanmar (MM; MMR); the Philippines (PH; PHL); Singapore (SG; SGP); Thailand (TH; THA); and Viet Nam (VN; VNM). The currencies of ASEAN+3 as defined in ISO 4217 include the Brunei dollar (BND), Cambodian riel (KHR), Yuan Renminbi (CNY), Hong Kong dollar (HKD), Indonesian rupiah (IDR), Japanese yen (JPY), Korean won (KRW), Lao kip (LAK), Malaysian ringgit (MYR), Myanmar kyat (MMK), Philippine peso (PHP), Singapore dollar (SGD),