Shanghai Clearing House has initiated a public consultation on May 7 regarding its Draft Foreign Currency Repo Clearing Business Guidelines (2026 Revision). The key revisions focus on enhancing operational flexibility for market participants.

The proposed amendments aim to facilitate collateral substitution in foreign currency pledged repo transactions during their term. Parties will be permitted to initiate and confirm collateral replacement operations for unsettled trades through Shanghai Clearing House's integrated business system. Under emergency circumstances, such operations may be executed by the clearing house upon submission of contingency instructions.

Additionally, the revisions address flexible settlement needs for foreign currency outright repos at maturity. The clearing house will support parties in initiating cash settlement operations for maturity instructions prior to the settlement date, with contingency procedures available for emergency situations.

The consultation document outlines modifications to Chapter 3 (Business Operations) and Chapter 6 (Emergency Handling), including amendments to Article 40 and new Articles 27, 46, 28, and 47 with corresponding appendices.

Market participants are invited to provide feedback on these specific revisions through mail, email, or fax before May 19, 2026. The guidelines cover various foreign currencies including USD, EUR, GBP, JPY, HKD, AUD, CAD, SGD, and NZD, supporting delivery-versus-payment, payment-after-delivery, and delivery-after-payment settlement methods.

The updated guidelines specify operational timelines, collateral management procedures, contingency protocols, and fee structures for foreign currency repo clearing services. Normal business hours are maintained from 09:00 to 17:00 Beijing Time, with emergency instructions requiring submission by 16:30.