Brussels/Shanghai – 9 September 2019 – Euroclear Bank, the Brussels based international central securities depository (ICSD) has signed a memorandum of understanding (MOU) with China Central Depository & Clearing (CCDC).
The intention of this collaboration is to work towards enhancing cross-border services and eventually establishing an efficient link to support further opening of the Chinese Interbank Bond Market.
The two parties will also explore opportunities to provide cross-border collateral management services which will aim to promote the use of RMB-denominated securities as collateral in the international financial market.
Ruqing Shui, Chairman of China Central Depository & Clearing said: "This MOU is a strong first step towards our goal of easing access for investors to the China Interbank Bond Market without changing the way they access other markets. What’s more, with our cooperation, there is possibility that RMB assets can be used as eligible collateral in more business scenarios, to enrich the collateral pool of global investors when they experience HQLA shortage.”
Valerie Urbain, CEO Euroclear Bank commented: “We are very pleased to have signed this MOU with China Central Depository & Clearing. This signifies a true commitment towards opening a cross-border link and explore new opportunities which will benefit the global capital markets. This partnership further underpins our wider Asia strategy which spans nearly 30 years in the region.”