Source: Depository Trust & Clearing Corporation
The Depository Trust & Clearing Corporation (DTCC) and the China Securities Depository and Clearing Corporation Limited (SD&C) have signed a Memorandum of Understanding (MOU) 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 Chief Executive Officer and Chairman-elect 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. It 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.
"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. SD&C firmly believe that we have bright perspectives and enormous cooperative opportunities regarding securities clearance, settlement and depository business and hope that the signing of the MOU will promote our cooperative relationship," said SD&C Vice Chairman and General Manager Madame Ying Jin.
"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.
Under the terms of the agreement signed today, both sides will "establish a basis of co-operation in securities depository and clearing matters to help foster the prosperity of their financial markets, promote cross-border investment and explore opportunities for co-operation 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.