Shanghai Clearing House (SHCH) was established on November 28, 2009. It is an important financial market infrastructure approved and directed by the People's Bank of China (PBC), is a Qualified Central Counterparty (QCCP) accepted by PBC and also one of the central securities depositories in China.
SHCH, as the company's acronym and trademark, concisely and intuitively embodies the company's mission of providing safe and efficient clearing services for financial market participants and its orientation as a company keeping a foothold in Shanghai, serving the whole China and with an eye to the international market. It also reflects national strategies of deepening China's financial market reform and opening-up, and developing Shanghai into an international financial center.
SHCH is committed to becoming a "normative, market-oriented and internationalized" clearing institution. Its main business includes registration, custody, clearing, settlement, delivery, margin management and collateral management for direct and indirect RMB and foreign currency transactions and derivatives transactions in financial market; information service and consultancy service etc.
SHCH actively implements the essence requirement that finance should serve real economy, and pushes forward CCP clearing, registration, custody and settlement services at the same time. At present, SHCH has established a CCP clearing service system in China's OTC financial market, including CCP clearing for bonds, interest rate derivatives, foreign exchange and exchange rate derivatives, commodity derivatives. Besides, SHCH has developed a national center of registration, custody and settlement for corporate credit bonds, serving innovative financial products, such as corporate credit bonds, financial bonds, money market instruments and structured products. In 2016, the amount of clearing business reached 219.4 trillion yuan, the custody balance by the end of the year reached 14.42 trillion yuan.
By strictly following Principles for Financial Market Infrastructures (PFMI) jointly released by BIS and IOSCO, SHCH has developed a set of effective and complete risk management system, reached the highest assessment (rating 4) in the assessment report on implementing PFMI in 2016. Also, SHCH got the permission from CFTC that SHCH may immediately clear certain swaps for the propriety trades regarding US persons, with an effective period of one year. Besides, SHCH released valuation data for more than 24,000 fixed income products in 12 categories, and 26 return rate curves every day, thereby making great contribution to PBC's systemic risk management.
With the increasing influence in risk control, SHCH has become a member of Executive Committee of CCP12 in 2015, and successfully pushed on the registration and location of CCP12 entity in Shanghai in 2016. CCP12 is the first international industry association located in China, and also the third international financial organization in China following BRICS Development Bank and Asian Infrastructure Investment Bank. With these achievements, SHCH serves to promote the soft power of Chinese financial industry in international competition and helps the construction of Shanghai International Financial Center.