Shanghai Clearing House becomes fifth in Asia to start OTC clearing

China flag

Shanghai Clearing House (SCH) started clearing CNY interest rate swaps on January 2 with a mandate expected in June but the clearing house is unlikely to apply for Esma recognition according to lawyers. Within Asia, China is the latest country to start over-the-counter clearing after Australia, Hong Kong, Singapore and Japan. As a G-20 member China is keen to comply with the commitment laid out at the Pittsburgh summit in 2009 to clear all standardised derivatives and as its young derivatives