to further support the high quality development of the foreign exchange market while ensuring controllable risks in central counterparty (ccp) clearing services, shanghai clearing house (shch) officially launched the collateral bond service for rmb foreign exchange ccp clearing on march 4, 2026. this service expands eligible margin assets beyond rmb and us dollars to bonds, enabling institutions to flexibly manage their margin portfolios.
the collateral bond service for rmb foreign exchange ccp clearing allows clearing participants to use bonds to offset minimum margin requirements within quotas specified by shch. eligible bonds include qualified rmb denominated bonds issued and custodied at shch by development banks and policy banks (hereinafter referred to as policy financial bonds cleared and issued via shch).
following the launch, industrial and commercial bank of china completed the first transaction successfully. other initial participants include china zheshang bank, bank of ningbo, deutsche bank (china), crédit agricole cib (china), etc., with a total volume of eligible policy financial bonds submitted reaching rmb 4.36 billion.
going forward, under the guidance of the people’s bank of china and the state administration of foreign exchange, shch will follow the guideline of “preventing risks, strengthening regulation and promoting development” for financial industry, continue to leverage the synergy of its dual pillar businesses, further expand and optimize foreign exchange clearing services, strengthen risk prevention and control for financial market infrastructure, and facilitate the high quality development of the interbank foreign exchange market.
