Shanghai’s central clearing counterparty was seen falling short due to China’s weak netting and insolvency laws, with international recognition seen as unobtainable. The warning was made in a letter from the International Swaps and Derivatives Association to the
SGH, noting the biggest concerns of ISDA members were over the strength of China’s legal framework. [The Shanghai Clearing House was seen recently delaying the launch of its CCP. It is understood the clearinghouse will start operations sometime in 2014].
