The Global Association of Central Counterparties registers the association as a non-profit organization in the China (Shanghai) Pilot Free Trade Zone on June 8, 2016. [Photo provided to chinadaily.com.cn]

The Global Association of Central Counterparties (CCP12) opened in Shanghai on Jan 12, half a year after its registration in the China (Shanghai) Pilot Free Trade Zone as a non-profit organization on June 8, 2016.

The association, a global regulatory organization for the finance industry, formed in 2001 and endeavors to further the industry adopting the best clearing and risk management practices. It also supports the gradual application of practices that will see Shanghai's financial sector comply with global standards.

Currently, it has 35 member institutions, including London Clearing House, Nasdaq Clearing AB, and Shanghai Clearing House. Its membership covers major trading markets and over-the-counter markets worldwide. Consequently, it plays a significant role in financial market reform, industry standard making, and the coordination of cross-border supervision.

CCP12's arrival in Shanghai reflects China's progress in financial market development and risk prevention. The arrival will also help attract more international financial organizations and professionals to Shanghai, increase the city's global exposure and influence, and contribute to the city's goal of becoming an international financial center.

After settling in Shanghai, the association will work on lowering the systematic risk of global markets and improving market efficiency.