Statement of Chairman Timothy Massad on No-Action Letter Shanghai Clearing House

May 31, 2016

I am pleased that CFTC staff has granted important no-action relief to Shanghai Clearing House. As of today, Shanghai Clearing House will be allowed to temporarily clear certain swaps that are subject to mandatory clearing in China. This relief is intended as an interim measure, as Shanghai Clearing House intends to seek a permanent order exempting it from registration with respect to such swap clearing. It follows months of work between our respective staffs as well as the staff of the People’s Bank of China (PBOC). We welcome this new relationship and look forward to continued collaboration.

During my tenure as CFTC Chairman, I have been very focused on strengthening our relationship with Chinese regulators, particularly given the importance of the Chinese markets to the markets that we regulate and to the global economy. Today’s announcement is an important step in that regard, and we will continue seeking opportunities to enhance cooperation and dialogue between the CFTC and both the PBOC and the China Securities Regulatory Commission (CSRC). I look forward to further conversations on this and many other issues related to our oversight of the derivatives markets at the upcoming U.S.-China Strategic and Economic Dialogue next week.

Last Updated: May 31, 2016