Euroclear has signed a consultation agreement with the leading CSD in China, the China Securities Depository & Clearing (CSD&C) Corporation. Under the terms of the contract, Euroclear will assess the competitiveness of China’s operational infrastructure and will make recommendations to help CSD&C develop its registration and clearing system in line with demands arising from China’s securities market development. Furthermore, Euroclear will advise SD&C on how to link with international and other national central securities depositories.
Euroclear’s responsibility encompasses a detailed review of the current clearing, settlement, depository and registration practices of SD&C. The results of this research, supplemented by Euroclear’s long-standing operational expertise, will be applied to international standards for the processing and servicing of securities transactions for both domestic and international users.
Specifically, the recommendations issued by the International Securities Services Association in 2000 and by the BIS/IOSCO in 2001 will be considered as key benchmarks. Due for completion by the end of January 2003, Euroclear’s recommendations will take into account the local practices of the Chinese financial markets and China’s legal framework.
Responding to market demands, SD&C are trying to create a centralised, unified, safe and efficient registration and clearing system. After prudent comparison, SD&C chose a famous international securities depository, Euroclear, to provide it with professional and comprehensive consulting services.
Commenting on the announcement, Jin Ying, General Manager of SD&C said: “SD&C feels very optimistic to benefit from Euroclear’s expertise in domestic and cross-border securities services in evolving SD&C’s capabilities to a new level. Euroclear’s solid credentials and outstanding reputation in the international capital markets gives SD&C high confidence that they will deliver a valuable solution.”
Jol Mrre, Chief Executive Officer of Euroclear France, added: “We welcome the opportunity to share our knowledge and expertise with SD&C in helping them to further their objectives domestically and internationally. On behalf of SD&C, we will leverage all of Euroclear’s experience, including more than 10 years of providing advisory services to central securities depositories worldwide.”