· Document Number：No. 143 [2015] of Clearing House Financial Markets Co., Ltd.

· Area of Law： Foreign Exchange

· Level of Authority： Industry Regulations

· Date issued：12-28-2015

· Effective Date：12-28-2015

· Status： Effective

· Issuing Authority： Shanghai Clearing House

Notice of the Clearing House Financial Markets Co., Ltd. on Issues concerning the Extension of Foreign Exchange Transaction Hours and the Introduction of Qualified Overseas Entities to Participate in the Centralized Clearing Business
(No. 143 [2015] of the Shanghai Clearing House)
All inter-bank foreign exchange marketparticipants:
In accordance with the Announcement No. 40 [2015] of the People's Bank of China and the State Administration of Foreign Exchange, from January 4, 2016, the operation hours of the inter-bank foreign exchange market transaction system each day will be extended to 23:30, Beijing Time, and qualified overseas entities will be further introduced to participate in the inter-bank foreign exchange market. In order to facilitate inter-bank foreign exchange market participants' participation in the centralized clearing business, guarantee the system's normal operation in the extended hours of foreign exchange transactions, and promote the smooth introduction of qualified overseas entities, you are hereby notified of the following issues concerning the centralized clearing business in the inter-bank foreign exchange market:
I. Centralized clearing business for foreign exchange auction transactions
After the transaction hours in the inter-bank foreign exchange market are extended, the Shanghai Clearing House will conduct the clearing of spot RMB-foreign exchange auction transactions and spot foreign currency pairs auction transactions immediately after receiving the transaction data from the China Foreign Exchange Trade System (CFETS) at 0:25 of the day after the transaction date, and a settlement list will be generated and issued before 2:00 of the day after the transaction date. Clearing participants may download the settlement list through the Client terminal of the Shanghai Clearing House during the working hours of the day after the transaction date, and the subsequent fund settlement processes and time points will remain unchanged.
II. Central counterparty clearing business for RMB-foreign exchange OTC transactions
After the transaction hours in the inter-bank foreign exchange market are extended, the business processes and time points of the central counterparty clearing business of RMB-foreign exchange OTC transactions will remain unchanged. The Shanghai Clearing House will, after receiving the transaction data at 9:30 of the first working day after the transaction date, conduct compliance check, contract substitution, margin calculation, netting, and other relevant operations. A clearing participant may download the settlement list, the margin list, and other relevant data through the Client terminal of the Shanghai Clearing House after 11:00, and complete the margin settlement and fund settlement accordingly.
III. Qualified overseas entities' participation in the centralized foreign exchange clearing business
After becoming the members of the inter-bank foreign exchange market, qualified overseas entities may choose to directly participate in the centralized foreign exchange clearing business or indirectly participate in the centralized foreign exchange clearing business through clearing agencies designated by the Shanghai Clearing House. For the specific business processes, please refer to the Clearing Rules for Spot RMB-Foreign Exchange Auction Transactions in the Inter-bank Foreign Exchange Market and the supplementary provisions thereto, the Clearing Rules for Spot Foreign Currency Pairs Auction Transactions in the Inter-bank Foreign Exchange Market, and the Guide to the Central Counterparty Clearing Business for RMB-Foreign Exchange OTC Transactions in the Inter-bank Foreign Exchange Market.
Business Contact: Wang Shujing, 021-23198578
Clearing House Financial Markets Co., Ltd.
December 28, 2015