The People's Bank of China (PBOC) has released notices to unify the clearing of over-the-counter (OTC) financial derivatives, according to a statement on Thursday. The central bank requires the Shanghai Clearing House as central counter party to provide unified clearing services for all transactions of OTC financial derivatives, to control risks and secure contract fulfillment. Meanwhile, the notices regulate that all qualified clearings of the yuan's Interest Rate Swap (IRS) should be submitted to the Shanghai Clearing House or explained to the central bank. The qualified IRS clearing refers to those with a time limit of no more than five years and taking seven-day fixed repo rate or Shanghai Interbank Offered Rate as a reference rate. The PBOC's notice was carried out on Jan. 28.