“Asia-Pacific Central Securities & Depositories Group” Overview of ACG by T aiwan D epository & C learing C orporation

Foundation of ACG Formed in November 1997 Facilitate exchange of information and promote mutual assistance among Asia-Pacific Region Official website ( established by TDCC in Apr. 2005

Member of Participants 25 Institutions/18 Countries (as of Mar. 2006) Current applicants Japan Securities Clearing Corp. (JSCC) Maldives Securities Depository (MSD)

Activities Underway Periodical Activities: ACG Web. Newsletter (Quarterly) ACG General Meeting ACG 10  Karachi, Pakistan (2006 Fall) Cross-Training Seminar for non- executive officers (Annually) Bangkok, Thailand (June 2006)

ACG Task Forces Main Task Forces – 2005 Settlement Risk Management (TSD) “ Failed” Trade Settlement Exchange of Information (JASDEC) To share changes on fee structures by the use of web to collect data from members

ACG Task Forces Technical (NSDL) Information Security Management System in CSD Straight Through Processing (STP) New Service Initiative (KSD) Securities Lending & Borrowing (SLB) service

Most Up-To-Date 10th ACG Annual Meeting: Host: Central Depository Company of Pakistan Limited (CDC) Online System operational improvement Official website maintained by TDCC Consultation Committee CDCP, HKEX, JASDEC, KSEI, NSDL, TDCC Establish by end of June 2006 Information upload (Limits of Authority) ACG online Information User Policy

Development & Issues Discussion on the official subscription of ACG Official or Informal Organization Formulation of Permanent Executive Secretariat Still under debate

Task Forces Main Purposes To share experiences To exchange information To promote mutual assistance and cooperation To pursue development & prosperity of members Task ForceConvenor Exchange of Information Task ForceJapan Securities Depository Center, Inc. Settlement Risk Management Task ForceThailand Securities Depository Co., Ltd. Technical Task ForceNational Securities Depository Limited New Service Initiative Task ForceKorea Securities Depository TASK Groups

Exchange of Information Task Force Terms of Reference Activities to facilitate the exchange of information concerning the securities market of ACG members Activities to facilitate and promote the mutual assistance and cooperation among members of ACG ACG T/F Activities Current Activities and Future Plans Annual survey on various services provided by ACG members (e.g. Fee Structure of ACG members in 2005) Publishing ‘ACG Member Profile’ and announcing various statistics in relation with ACG members Organizing ACG Cross Training Seminar for non-executive staff of ACG members Plans to organize 2006 ACG Cross Training Seminar with TSD as the host along with the New Service Initiative Task Force

Technical Task Force ACG T/F Activities Terms of Reference Investigate business proposals in relation to technical issues such as e- commerce and security of system networks Current Activities and Future Plans Reporting a research paper on ‘Information Security Management System (ISMS)’ at ACG9 (2005) Research topics for 2006 yet to be decided

Settlement Risk Management Task Force ACG T/F Activities Terms of Reference Develop the understanding of risk management practices Examine the management of failed trades Examine the activities of the derivatives market Share experience among members Current Activities and Future Plans Conducted a survey on ‘Risk Management of Failed Settlement’ and distributed the results to the ACG members (2005) Plans to conduct a more in-depth survey on settlement practices of ACG members as a way to identify possible risk factors and improve current settlement practices

New Service Initiative Task Force ACG T/F Activities Terms of Reference Sharing information & experience on New Service Initiatives Making joint efforts to initiate New Services in the areas of common interest Pursuing development & prosperity of members Current Activities and Future Plans Collected and compiled the SLB-related material of member organizations – market practices, legal systems, and room for improvements KSD Supporting TSD (Thailand) to develop SLB system this year Plans to organize a seminar on SLB services as a part of 2006 ACG Cross Training Seminar in June, 2006 Plans to conduct a research into cross-border transactions and CSD linkage in 2006