Shanghai Clearing House Partners with R5FX for Cross Border Clearing

In what is a first in China, and yet another step in the ongoing process of renminbi internationalization, the Shanghai Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term is launching the first cross-border foreign exchange clearing platform.

The project is expected to be deployed next month. London-based R5FX is actively participating in the development and realization of the first Chinese cross-border foreign exchange clearing solution. The company already has expertise in the field with its clearing platform for EMFX traders.

The Shanghai Clearing House will deploy trade clearing infrastructure within mainland China, as R5FX opens access to its clearing infrastructure in London and several other international markets where it is operating like Hong Kong, Singapore, and New York.

Commenting on the project, the general manager of product development department at Shanghai Clearing House, Cheng Leilei, said: “We have chosen London because it is a leading international foreign exchange hub with 40 percent of global foreign exchange trading.”

London - the Main Offshore Renminbi Center Outside Asia

The new Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term enables onshore Chinese banks to trade with overseas banks. The initial phase of the product deployment will enable foreign exchange transactions with bonds and derivatives down the pipeline.

Elaborating on the milestone and its importance for renminbi internationalization, the People’s Bank of China’s chief representative in Europe, Jin Mei, said: “China has decided to continue opening up. In the last several years, the PBOC has taken effective steps to reduce foreign exchange controls and prudently promote renminbi convertibility.”

London continues to be a big hub for offshore renminbi trading with its title as the biggest venue for such trades outside of Asia. According to the Society for Worldwide Interbank Financial Telecommunication, during the first quarter of 2017, 36.3 percent of global offshore renminbi exchange transactions were executed via London.