The Bank of America, N. A. Shanghai Branch (BANA Shanghai) has been approved to engage in RMB interest rate swaps (IRS) after becoming the first US non-body corporate member of Shanghai Clearing House.

Shanghai Clearing House said the move implements measures introduced by the People's Bank of China, the country's central bank, on centralized clearing of RMB IRS between banks, as well as the clearing mechanism for standardized over-the-counter financial derivatives rolled out by the G20.

BANA Shanghai completed its first RMB IRS deal on March 19, with relevant information provided to the US Commodity Futures Trading Commission (CFTC) by Shanghai Clearing House in accordance to agreement.

Shanghai Clearing House added it would continue the service BANA Shanghai and support its diversified development of interest rate derivatives.