Clearstream, the ICSD owned by Deutsche Brse Group, has signed a Memorandum of Understanding (MoU) with Chinaclear, the securities depository for the Chinese capital markets. The MoU commits the two organisations to “explore the potential of delivering improved post-trade services to the securities markets of China.”
“SD&C firmly believes that the MOU between SD&C and Clearstream will further promote our cross-border communication and cooperation on securities depository and clearing services, which helps us establish an open, flexible and unified securities registration and settlement system in line with international standards and practices, better serving market players and supporting the development of China’s securities market,” says Chen Yaoxian, Chairman of the China Securities Depository and Clearing Corporation Limited.
Chinaclear is the brand name for the China Securities Depository and Clearing Corporation Limited (SD&C), which was established in March 2001 to manage the securities registration and clearing business of the Chinese capital markets. Currently, SD&C is China’s sole national securities depository. It provides clearing and registration services for the two stock exchanges in Shanghai and in Shenzhen.
Clearstream, which has had a regional office in Hong Kong for over 14 years, has a long-established presence in the region. Its business in Asia has increased significantly in recent years, with annual growth rates of 18% in assets under custody.
The agreement means that the two parties will enter into detailed discussions and share expertise on clearing, settlement and custody operations. They will also explore the opportunity to create a combined initiative or operational linkage to deliver a wider range of services to the local market.
Deutsche Brse Group has established a close working relationship with the Shanghai Stock Exchange, the largest Chinese equity market. In fact, the Shanghai exchange uses the Deutsche Brse Xetra technology as the core of its trading platform.
“Clearstream looks forward to extending the relationship with Chinaclear and thereby delivering enhanced services to market participants in the region,” says Volker Potthoff, Managing Director of Clearstream’s Banking and Custody Division. “This is an exciting opportunity for us to further show the commitment of Deutsche Brse Group to the development of the Chinese capital markets.”