June 21, 2016 (TORONTO) – TMX Group and Shanghai Clearing House (SHCH) today announced the signing of a Memorandum of Understanding (MoU) to establish a cooperative relationship to share information with respect to each other's businesses and explore opportunities for collaboration.
Under the terms of the MoU, TMX Group and SHCH will form a working group to evaluate joint business opportunities, including the development of progressive market solutions and new products to support the growth of foreign investor participation in China's financial markets. SHCH is recognized by the People's Bank of China as the Qualified Central Counterparty (QCCP) for Chinese commercial bonds. TMX Group and SHCH will examine opportunities across each other's core businesses to facilitate innovation, reduce costs and improve efficiency in both markets. The two organizations will also work together to raise awareness and promote ongoing dialogue concerning RMB bond and offshore RMB topics.
"As China's economy continues to develop, the country's financial markets are rapidly opening up to globalization and opportunities for cross-border cooperation," said Zhen XU, Chairman of Shanghai Clearing House. "The signing of this MOU with TMX Group marks the beginning of an important partnership for SHCH and the cooperation will enhance communications between Chinese and Canadian financial markets."
"This MoU with SHCH marks the beginning of a promising new relationship for TMX as China begins to take significant steps to open its markets to foreign participation," said Lou Eccleston, CEO, TMX Group. "We look forward to working with an industry leader to closely examine emerging opportunities in the region to leverage TMX's depth of capabilities and expertise in operating efficient markets."
About TMX Group (TSX: X)
TMX Group's key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, NGX, BOX Options Exchange, Shorcan, Shorcan Energy Brokers, AgriClear and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository services, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montréal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing, Singapore and Sydney. For more information about TMX Group, visit our website at http://www.tmx.com. Follow TMX Group on Twitter: @TMXGroup.
About Shanghai Clearing House (SHCH)
Shanghai Clearing House (SHCH), established on November 28, 2009, was authorized and directed by the People's Bank of China (PBC). SHCH provides important financial market infrastructure to China; operating as Qualified Central Counterparty (QCCP) as well as a central securities depository. SHCH offers centralized and standardized RMB and foreign currencies clearing services for financial market spot and derivatives transactions as well as RMB cross-border transactions approved by PBC. Business of SHCH includes: registration, custody, clearing, settlement, margin management, collateral management, information services, consultation services and other services approved by PBC.
Issue and Custody Department
Shanghai Clearing House
Senior Manager, Communications and Public Affairs