Key facts
- China Central Depository and Clearing (CCDC) is nearing the finalization of its initial margin rules.
- The new rules will enable Chinese government bonds (CGBs) to be used as collateral.
- This collateral can be applied to non-cleared over-the-counter derivatives.
- The rules are expected to impact both domestic and cross-border derivative trades.
China Central Depository and Clearing (CCDC) is reportedly very close to finalizing its initial margin (IM) rules. This development is anticipated to allow Chinese government bonds (CGBs) to be utilized as collateral for non-cleared over-the-counter derivatives. The new regulations are expected to impact both domestic and international derivative trading by providing a new collateral option. The formalization of these revised CCDC rules is expected imminently, which will then initiate the process of integrating CGBs into derivative collateral frameworks.