Market participants argue that the proposed Asia Region Funds Passport scheme will help boost penetration of funds automation in Korea and elsewhere in Asia.
Hong Kong's central bank hopes that partnering Clearstream will help to reignite interest in its repurchase agreement settlement platform. To date very few deals have been closed.
There is growing interest among regulators and exchanges in Asia in the introduction of national tri-party collateral platforms to mitigate against counterparty credit risk.
The German firm is rolling out exchange trading of mutual funds across Asia, cutting the cost and time of buying these products.
Clearstream and Euroclear have signed agreements with the new Shanghai Clearing House, but fully efficient links to securities depositories in China are still some way off.
Euroclear will provide securities settlement through the Korea Securities Depository.