On September 1, 2026, Shanghai Clearing House (SHCH) officially launched BUMP, its full-process service platform for bilateral margin management, in support of the implementation of China’s new regulatory requirements for bilateral margin. A total of 36 institutions, including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank of China, China Everbright Bank, China Merchants Bank, Shanghai Pudong Development Bank, Ping An Bank, Industrial Bank, Bohai Bank, China Zheshang Bank and HSBC, were among the first participants to access the platform. Bank of China and Shanghai Pudong Development Bank successfully completed the first automated bilateral margin settlement through BUMP.
Bilateral margin requirements are an important part of the global reform of the over-the-counter (OTC) derivatives market following the international financial crisis. Together with central counterparty (CCP) clearing, they form a policy framework for containing systemic risk and strengthening economic incentives and constraints. Building on its statutory responsibilities in margin management and collateral management, SHCH initiated the bilateral margin platform project in 2023 and completed Phase I development of BUMP in 2025.
The launch of BUMP marks another important achievement by SHCH in the field of bilateral margin, following its becoming the first licensed vendor of ISDA SIMM in mainland China in 2020. It will help market participants implement bilateral margin requirements in an orderly and effective manner and enhance their risk management capabilities; enable China’s financial market infrastructures to achieve comprehensive risk management coverage across CCP clearing and bilateral clearing and help prevent and mitigate systemic risk; and improve Shanghai’s risk management framework for OTC derivatives, further consolidating Shanghai’s position as an international financial center.
BUMP is committed to serving as a “watchtower” for risk prevention and information exchange and a “risk management partner platform” for derivatives market participants. Going forward, under the leadership of the PBOC, SHCH will continue to improve the quality, coverage and efficiency of BUMP, optimize system functions including reconciliation and communications, and further enhance the risk management service framework for bilaterally cleared derivatives. SHCH will also explore synergies between BUMP and its dual-pillar businesses, including CCP clearing and registration and custody, making greater contributions to the high-quality development and high-standard opening-up of China’s financial market.
