China Depository And DTCC Sign Agreement

By Steve Letzler

DTCC and the China Securities Depository and Clearing Corporation Limited (SD&C) signed a memorandum of under-standing (MOU) on June 11 to foster an information exchange and cooperation on projects of interest.

The agreement, signed in formal ceremonies in Beijing by SD&C Chairman Yaoxian Chen and DTCC Chairman-elect and Chief Executive Officer Donald F. Donahue, provides the legal and business framework for SD&C and DTCC to work together and exchange information at both senior and staff levels.

This is the latest memorandum of understanding DTCC has signed with China, following one with the China Government Securities Depository and Clearing Corporation Limited (CDC) in December 2006.

'Bright perspectives'
"We're delighted to sign this agreement with SD&C to expand our relationships with key clearing and settlement organizations in China," said Donahue. "China is a country with dramatically increasing stock market participation, and as the financial industry becomes more and more a global business, China will play a major role. From our point of view, building relationships with organizations like SD&C will help us understand their business better, and we hope we can assist in providing information to them from our perspective in the U.S."

"DTCC and SD&C share the privilege of serving our respective capital markets industries, and both organizations have a common understanding of the importance of that role, which spurs the beginning of our cooperative relationship," said SD&C Vice Chairman and General Manager Madame Ying Jin. "SD&C firmly believes that we have bright perspectives and enormous cooperative opportunities regarding securities clearance, settlement and depository business and hopes that the signing of the MOU will promote our cooperative relationship.

"This MOU clearly defines the objective and purpose of our cooperation and establishes a formal channel of information exchanges, which broadens the cooperative area in terms of business development and innovation. It is no doubt that the MOU will promote the initiatives regarding further practical cooperation and thus bring huge benefits to our industries," she said.

More on the MOU
Under the terms of the agreement, both sides will "establish a basis of cooperation in securities depository and clearing matters to help foster the prosperity of their financial markets, promote cross-border investment and explore opportunities for cooperation in both depository and clearing operations and in the establishment of an operation linkage."  The pact also noted that the parties "anticipate developing a closer working relationship" in the future. @

SD&C Chairman Yaoxian Chen and DTCC Chairman-elect and Chief Executive Officer Donald F. Donahue sign the MOU in Beijing.

China Securities Depository and Clearing Corporation

The central registrar, the sole central counterparty and central securities depository of mainland China's securities exchange market, China Securities Depository and Clearing Corporation Limited (SD&C) was founded March 30, 2001, and is supervised by China Securities Regulatory Commission (CSRC).

SD&C's main functions include: establishment and management of securities accounts and settlement accounts; depository and transfer of ownership of securities; registration of the register of securities holders, as well as the registration of their rights and interests; clearing and settlement, as well as the relevant management of securities and funds; distribution of securities rights and interests as instructed by the issuer; providing inquiry, information, consultancy and training services relating to the securities registration and settlement business in accordance with the law; and undertaking of other business as approved by the CSRC.