Euroclear Bank and the newly created Shanghai Clearing House have signed today a Memorandum of Understanding (MoU) as the basis to build a close co-operative relationship.
Under the MoU, Shanghai Clearing House and Euroclear will explore how best to co-operate on securities clearing, settlement and related matters in supporting clients active in the Chinese financial markets and in those capital markets covered by Euroclear. The relationship aims at providing a more efficient post-trade infrastructure that will facilitate cross-border investment, as well as strengthen the risk-mitigation capabilities of Shanghai Clearing House for its clients.
The agreement stipulates a programme of cross-company staff training in order to develop a better understanding and knowledge of the respective financial markets. The MoU also covers the exchange of business model information, the potential application of market standards and a wide range of possible transaction-processing improvement opportunities.
Xu Zhen, Chairman of the Board and Chief Executive Officer of Shanghai Clearing House, commented: "We look forward to sharing Euroclear's wealth of experience in post-trade processing. The creation of Shanghai Clearing House is expected to improve clearing efficiency, reduce costs, provide the necessary technical support for financial product innovation and prevent systemic financial risks within China. In this context, our relationship with Euroclear will serve to strengthen Shanghai as a global financial centre."
Ignace R. Combes, Deputy Chief Executive Officer of Euroclear SA/NV, said: "Close co-operation with Shanghai Clearing House is important to us, as the global potential of the Chinese financial markets is well understood. Sharing information and expertise is highly valuable in supporting Shanghai Clearing House to maximise opportunities for Asian investors. Euroclear is keenly committed to the region, where we have operated consistently since 1987."