The Shanghai Clearing House solicits public opinions on the "Guide to Foreign Exchange Repurchase Settlement Business of China Foreign Exchange Market Clearing House Limited Company".

On May 7th, Shanghai Clearing House publicly solicited opinions on the "Guidelines for Foreign Currency Repurchase Clearing Business of Interbank Market Clearing House Limited (2026 Revised Draft)". The main revisions of this revision are as follows: to support the flexibility of pledging securities changes and replacements during the existence of foreign currency repo transactions, it is clear that during the existence of the foreign currency repo clearing business, the trading parties can initiate and confirm the pledge securities replacement operation for transactions that have not yet expired in the Shanghai Clearing House comprehensive business system, and in emergency situations, emergency instruction book can be filled out by the Shanghai Clearing House to operate on behalf. To meet the flexible settlement needs of trading parties at the expiration of foreign currency buy-back transactions, it is clear that Shanghai Clearing House supports trading parties to initiate cash settlement operations before the settlement date on the expiration settlement date, and in emergency situations, an emergency instruction book can be filled out by the Shanghai Clearing House to operate on behalf. The original text is as follows: Announcement on the Public Solicitation of Opinions on the "Guidelines for Foreign Currency Repurchase Clearing Business of Interbank Market Clearing House Limited (2026 Revised Draft)" In order to adapt to the needs of market development, improve the practicality and applicability of the guidelines, the Interbank Market Clearing House Limited (Shanghai Clearing House) has revised the current "Guidelines for Foreign Currency Repurchase Clearing Business of Interbank Market Clearing House Limited (2022 Edition)" and formulated the "Guidelines for Foreign Currency Repurchase Clearing Business of Interbank Market Clearing House Limited (2026 Revised Draft)" (referred to as the "Draft Revision" below). Now, the "Draft Revision" is publicly soliciting opinions. The main revisions and relevant chapters of this revision are as follows: 1. To support trading parties in flexibly changing and replacing pledge securities during the existence of foreign currency repo transactions, it is proposed to modify the relevant content of Chapter Three Business Conduct and Chapter Six Emergency Handling, clarifying that during the existence of the foreign currency repo clearing business, trading parties can initiate and confirm the pledge securities replacement operation for transactions that have not yet been settled in the Shanghai Clearing House comprehensive business system, and, in emergency situations, an emergency instruction book can be filled out by the Shanghai Clearing House for operation. (Amending the original Article 40, adding Articles 27, 46, and Attachment 9) 2. To meet the flexible settlement needs of trading parties at the expiration of foreign currency buy-back transactions, it is proposed to modify the related content of Chapter Three Business Conduct and Chapter Six Emergency Handling, clarifying that Shanghai Clearing House supports trading parties to initiate cash settlement operations before the settlement date on the expiration settlement date, and in emergency situations, an emergency instruction book can be filled out by the Shanghai Clearing House for operation. (Amending the original Article 40, adding Articles 28, 47, and Attachment 10) In order to efficiently collect market feedback, this public solicitation of opinions focuses on the above-mentioned revision content, and welcomes market institutions to provide valuable opinions and suggestions on the revised parts of the "Draft Revision". The public can send feedback to the Shanghai Clearing House in writing, by email, or fax. The deadline for feedback is May 19, 2026 (10 working days from the date of this announcement). Mailing address: Business Department, Shanghai Clearing House, No. 2 Dongjing Road, Huangpu District, Shanghai Postal code: 200002 Email: [email protected] Fax: 021-23198866-8840 Attachments: 1. Guidelines for Foreign Currency Repurchase Clearing Business of Interbank Market Clearing House Limited (2026 Revised Draft)-Clean Draft 2. Guidelines for Foreign Currency Repurchase Clearing Business of Interbank Market Clearing House Limited (2026 Revised Draft)-Draft with Comments Interbank Market Clearing House Limited May 7, 2026 Interbank Market Clearing House Limited Guidelines for Foreign Currency Repurchase Clearing Business (2026 Revised Edition) Chapter One General Provisions Article 1 In order to promote the development of foreign currency repo clearing business in the interbank market, regulate the settlement of foreign currency repo clearing, the Interbank Market Clearing House Limited (hereinafter referred to as Shanghai Clearing House) has formulated the "Guidelines for Foreign Currency Repurchase Clearing Business" based on relevant national laws and regulations, regulatory requirements, and the "Rules for Registration, Custody, and Clearing Settlement of Bonds of Interbank Market Clearing House Limited". Article 2 These guidelines apply to Shanghai Clearing House's foreign currency repo clearing business. Article 3 The foreign currency repo referred to in these guidelines includes foreign currency pledging repos and foreign currency buy-back repos. Article 4 Foreign currency pledging repo is a short-term foreign exchange funding business conducted by the trading parties, in which bonds are pledged for rights, with the repurchasing party pledging the bonds to the reverse repurchasing party to borrow foreign exchange funds, and the two parties agree that the repurchasing party will return the funds calculated at the agreed repurchase rate on a future date to release the pledge of the rights on the pledged bonds by the reverse repurchasing party. Article 5 Foreign currency buy-back is a trading behavior in which the repurchasing party sells bonds to the reverse repurchasing party, and the two parties agree that on a certain date in the future, the repurchasing party will buy back an equal quantity of the same kind of bonds from the reverse repurchasing party at the agreed price, and the currency of the initial and maturity settlement amounts is the same non-renminbi currency. Article 6 In foreign currency repo transactions, the repurchasing party is the fund borrowing party, and the reverse repo party is the fund lending party. Article 7 The foreign currency repo clearing referred to in these guidelines refers to the clearing settlement and other related services provided by Shanghai Clearing House for foreign currency repo transactions. The scope of foreign currency repo clearing business services includes but is not limited to: foreign currency repo clearing confirmation, generation and sending of settlement instructions, settlement instruction processing, bond collateral management, foreign exchange settlement management, data queries, etc. Chapter Two Participation, Changes, and Withdrawal of Institutions Article 8 Institutions participating in foreign currency repo clearing business should open bondholder accounts (including Class A, Class B, Class C accounts) at Shanghai Clearing House. Before conducting business, participating institutions should already be members of the interbank foreign currency money market. Article 9 Overseas participating institutions holding Class C accounts should have their interbank bond market settlement agents handle clearing confirmations and bond settlement-related operations. Article 10 Institutions applying for changes in the legal representative, funds account, contact information, etc., should refer to the "Instructions for Operating Bond Account Business" of Shanghai Clearing House for processing requirements. Article 11 Institutions applying to withdraw from the foreign currency repo clearing business and need to terminate the bondholder account held by Shanghai Clearing House should refer to the "Instructions for Operating Bond Account Business" of Shanghai Clearing House for processing requirements. Chapter Three Business Conduct Article 12 The foreign currency repo clearing business supports repurchase currencies including: US Dollar (USD), Euro (EUR), British Pound (GBP), Japanese Yen (JPY), Hong Kong Dollar (HKD), Australian Dollar (AUD), Canadian Dollar (CAD), Singapore Dollar (SGD), New Zealand Dollar (NZD), etc. Article 13 The foreign currency repo clearing business supports three settlement methods: cash for securities, securities for cash, and cash for securities. Cash for securities means a type of settlement in which bonds and funds are settled synchronously and are conditional upon each other. Securities for cash means that the receiving party conditions the cash payment on the sending party's obligation to pay the full amount of the bonds. Cash for securities means that the sending party conditions the transfer of cash upon receipt of the full amount of cash from the receiving party. Article 14 When settling in cash for securities mode, the settling parties should have the cash for securities settlement authorization of Shanghai Clearing House and open a corresponding currency fund settlement account at Shanghai Clearing House. Article 15 When institutions apply to open or close cash for securities settlement authorization, they should submit the "Application for Cash for Securities Settlement Services in Foreign Currency Repurchase" (Attachment 1). If the authorization has not opened a cash for securities settlement account for foreign currency at the time of applying for authorization, they should also fill out the "Foreign Currency Cash for Securities Settlement Account Information Form" (Attachment 2) and open the account. Article 16 The first settlement date and maturity settlement date of foreign currency repo should support cash for securities, securities for cash, or cash for securities. Article 17 The first settlement date and maturity settlement date of a foreign currency repo should comply with the relevant effective date (repayment date) rules of the foreign currency repo transaction. Article 18 In case of a holiday adjustment, Shanghai Clearing House will adjust the settlement date of the trades according to the relevant rules of the interbank market foreign currency repo trading holidays, and generate new settlement instructions. The original settlement instructions will be cancelled. Article 19 The bond subject of a foreign currency repo is bonds that are publicly issued and circulated in the interbank market that are held in custody by Shanghai Clearing House. Article 20 The quantity of bonds for a single foreign currency pledging repo and a single foreign currency buy-back repo ranges from 1 to 10. Article 21 The service hours of the foreign currency repo clearing business are from 09:00 to 17:00 Beijing time. Article 22 To improve the efficiency of cash for securities settlement, participating institutions should ensure that the balance in the fund settlement account is sufficient on the settlement date according to the requirements of the "Instructions for Managing Cash for Securities Settlement Account" (see Attachment 3). Article 23 Participating institutions can confirm settlements for completed transactions in real time through the Shanghai Clearing House client after reaching a foreign currency repo transaction. If the confirmation is not completed before 17:00 Beijing time on the first settlement date, Shanghai Clearing House will not proceed with further processing. Article 24 Settlement Operations In cash for securities settlement mode, Shanghai Clearing House manages the bond and foreign exchange fund settlement. On the settlement date, after the bonds and foreign exchange funds of the settling parties are sufficient, Shanghai Clearing House conducts real-time foreign exchange fund transfers and bond collateral, release or transfer. If the bonds or funds are insufficient by 17:00 on the settlement date, the settlement is deemed unsuccessful. In securities for cash settlement mode, the trading parties settle the foreign exchange funds on their own, and the paying party before 17:00 on the settlement date submits a payment confirmation instruction through the Shanghai Clearing House client, and Shanghai Clearing House conducts bond collateral, release, or transfer in real-time. If the bonds are insufficient or if the paying party fails to submit instructions by 17:00 on the settlement date, the settlement is deemed unsuccessful. In cash for securities settlement mode, the receiving party settles the foreign exchange funds on their own, and before 17:00 on the settlement date, the receiving party submits a receipt confirmation instruction through the Shanghai Clearing House client, and Shanghai Clearing House conducts bond collateral, release, or transfer in real-time. If the receiving party's bonds are insufficient or if the receiving party fails to submit instructions by 17:00 on the settlement date, the settlement is deemed unsuccessful. Participants can enhance foreign exchange fund settlement efficiency through mutually agreed interaction methods. Article 25 If the settlement fails on the first settlement date of a foreign currency repo, the settlement instructions on the expiration settlement date will be automatically invalidated. Article 26 During the existence of the foreign currency repo clearing business, if the underlying bonds receive dividends, Shanghai Clearing House will pay interest to the bond holder account at the time of dividend payment. The trading parties can independently arrange bond interest payments according to the relevant agreements. Article 27 During the existence of the foreign currency pledging repo clearing business, the repurchasing party can initiate a pledge securities replacement operation for unsettled transactions that have not yet reached maturity in the Shanghai Clearing House comprehensive business system, which becomes effective after confirmation by the reverse repurchasing party. Article 28 During the existence of the foreign currency buy-back repo clearing business, Shanghai Clearing House supports the trading parties to initiate cash settlement operations before the expiration settlement date (excluding the expiration date). Article 29 After the settlement is completed, Shanghai Clearing House will update the bond and fund settlement status in real time, and participating institutions can query through the Shanghai Clearing House client. Article 30 In the event of a settlement failure in a foreign currency repo transaction, the trading parties should fill out the "Foreign Currency Repurchase Transaction Settlement Failure Record Form" (Attachment 4) and submit it to Shanghai Clearing House for record of the settlement failure. Article 31 Participating institutions can apply to cancel a foreign currency repo transaction concluded on the same day. If the trading parties have already completed the settlement confirmation on the Shanghai Clearing House client, the transaction cannot be canceled. Article 32 In the event of a settlement failure on the expiration settlement date of a foreign currency pledging repo, an overdue resale instruction for foreign currency repo can be processed within one year from the next day. The overdue resale instruction for foreign currency repo is initiated and reviewed by the reverse repurchasing party and becomes effective after confirmation by the repurchasing party. Article 33 The resolution of default in foreign currency repo settlement will be separately regulated. Chapter Four Information Services Article 34 Participating institutions can real-time query and download their own account data through the Shanghai Clearing House client, including but not limited to: transaction details and their status, settlement instruction details and their status. Article 35 Participating institutions can download related settlement documents through the Shanghai Clearing House client, including but not limited to: foreign currency repo delivery documents, foreign currency repo delivery failure notices, foreign currency repo overdue resale delivery documents, foreign currency repo overdue resale delivery failure notices, etc. Chapter Five Fees Article 36 The fees for foreign currency repo clearing business include settlement transfer fees for foreign currency pledging repos, settlement transfer fees for foreign currency buy-back repos, and settlement transfer fees for foreign currency repos that are overdue for resale. Article 37 When Shanghai Clearing House collects fees, it charges a fixed amount per settlement. Article 38 Fees for foreign currency repo clearing business are charged quarterly, and Shanghai Clearing House summarizes the fees due from each participating institution at the end of each quarter, and participating institutions can download fee payment notifications through the Shanghai Clearing House client. The fee deduction date for foreign currency repo business is the 25th of the first month after the end of the billing quarter, which is extended to the next working day in case of holidays. Participating institutions should remit the full amount of fees to the designated bank account of Shanghai Clearing House by the fee deduction date. In case of delay in payment, Shanghai Clearing House has the right to debit the fees directly from the designated fund settlement account of the participating institution. Article 39 The settlement transfer fees for foreign currency pledging repos and foreign currency buy-back repos are charged to both settling parties, and the settlement transfer fees for foreign currency repos that are overdue for resale are charged to the repurchasing party. Chapter Six Emergency Handling Article 40 Emergency situations in foreign currency repo clearing business include situations where participating institutions are unable to timely submit foreign currency repo clearing confirmations, applications for overdue resale of foreign currency pledging repos, payment confirmations for foreign currency repo clearing, requests for cash withdrawals from the active fund settlement account, securities replacements for foreign currency pledging repos, and cash deliveries for foreign currency buy-back repos through the Shanghai Clearing House client due to network, system, or other reasons. Article 41 Depending on the type of emergency business, participating institutions should fill out emergency instruction forms as required, fax them to Shanghai Clearing House, and communicate by phone with Shanghai Clearing House staff. Article 42 For emergency operations of foreign currency repo settlement confirmations, the "Emergency Instruction Form for Foreign Currency Repurchase Settlement Confirmation" (Attachment 5) should be filled out, with a trading confirmation as an attachment. Article 43 For emergency operations of entry, review, or confirmation of the overdue resale of foreign currency pledging repos, the "Emergency Instruction Form for Overdue Resale of Foreign Currency Pledging Repos" (Attachment 6) should be filled out. Article 44 For emergency operations of receiving payment confirmations in foreign currency repo clearing, the "Emergency Instruction Form for Foreign Currency Repo Settlement Payment Confirmation" (Attachment 7) should be filled out. Article 45 For emergency operations of cash withdrawals from the active fund settlement account for cash for securities settlement, the "Emergency Instruction Form for Cash Withdrawals from the Active Fund Settlement Account for Cash for Securities Settlement" (Attachment 8) should be filled out. Article 46 For emergency operations of securities replacements in foreign currency pledging repos, the "Emergency Instruction Form for Securities Replacements in Foreign Currency Pledging Repos" (Attachment 9) should be filled out. Article 47 For emergency operations of cash deliveries in foreign currency buy-back repos, the "Emergency Instruction Form for Cash Deliveries in Foreign Currency Buy-Back Repos" (Attachment 10) should be filled out. Article 48 For document exports related to foreign currency repo, the "Emergency Instruction Form for Document Downloads in Foreign Currency Repo" (Attachment 11) should be filled out. Article 49 Emergency instruction forms should be faxed to Shanghai Clearing House before 16:30 Beijing time. Emergency instruction forms received after 16:30 will not be accepted by Shanghai Clearing House. The responsibility for any related issues will be borne by the party initiating the emergency, and Shanghai Clearing House will not assume responsibility. Article 50 Procedures for reserving and changing fingerprint seals for emergency handling related to foreign currency repo clearing business can be found in the "Instructions for Operating Bond Account Business" of Shanghai Clearing House. Article 51 Upon receiving emergency instruction forms, Shanghai Clearing House will verify the reserved fingerprints and call the instruction issuer to confirm the information. The confirmed information includes: transaction settlement elements, any anomalies detected during fingerprint verification, etc. To ensure information security and accuracy, Shanghai Clearing House will record the confirmation information by phone. Article 52 After completing the emergency handling, Shanghai Clearing House will inform the participating institutions of the settlement success or failure results by telephone. Participating institutions can also inquire about the processing status with Shanghai Clearing House, or print settlement documents through the Shanghai Clearing House client once it resumes normal operation. Chapter Seven Supplementary Provisions Article 53 Shanghai Clearing House will monitor the foreign currency repo clearing business in accordance with relevant regulations of the regulatory authorities. Article 54 These guidelines are formulated, interpreted, and modified by Shanghai Clearing House, and will be implemented from the date of publication. Attachments: 1. Application Form for Cash for Securities Settlement Services in Foreign Currency Repurchase 2. Foreign Currency Cash for Securities Settlement Account Information Form 3. Instructions for Managing Cash for Securities Settlement Account 4. Foreign Currency Repurchase Transaction Settlement Failure Record Form 5. Emergency Instruction Form for Foreign Currency Repurchase Settlement Confirmation 6. Emergency Instruction Form for Overdue Resale of Foreign Currency Pledging Repos