HKMA and SFC seek views, until May 14, 2021, to update the list of financial services providers under the over-the-counter (OTC) derivatives clearing regime in Hong Kong. The list includes entities that belong to a group of companies appearing on the list of global systemically important banks (G-SIBs) or on the list of dealer groups that undertook to the OTC Derivatives Supervisors Group to work collaboratively with central counterparties, infrastructure providers, and global supervisors to continue to make structural improvements to the global OTC derivatives markets (G15 dealers). The list also includes an entity if it is a member of the largest central counterparties offering clearing for interest rate swaps in the US, Europe, Japan, and Hong Kong. The conclusion paper for this consultation is expected in June 2021 while the revised list will become effective on January 01, 2022.
This consultation should be read with papers on the earlier consultations on the implementation of the OTC derivatives regulatory regime, particularly the consultations on mandatory clearing. The following are the proposed changes to the financial services providers list, based on the current review:
- Include TD Global Finance Unlimited Company in the revised list of financial service providers, as it became a clearing member of central counterparties offering clearing for interest rate swaps in the US, Europe, Japan, and Hong Kong
- Keep on list the G-SIBs or G15-dealers member entities that are no longer clearing members of central counterparties offering clearing for interest rate swaps in the US, Europe, Japan and Hong Kong, unless there is no longer any entity within the group that is a clearing member of the central counterparties offering clearing for interest rate swaps in the US, Europe, Japan, and Hong Kong
- Retain on the list CACEIS Bank SA, a group member of a G-SIB (Groupe Crédit Agricole) that is no longer a clearing member of central counterparties offering clearing for interest rate swaps in the US, Europe, Japan, and Hong Kong, though other entities within its group continue to be clearing members of these central counterparties
- Revoke the financial provider designation of DB Privat- und Firmenkundenbank AG and remove it from the list, as this entity merged into another group entity in May 2020, which is also a financial services provider
- Reflect changes to the names of certain financial services providers since the last review
Comment Due Date: May 14, 2021
Keywords: Asia Pacific, Banking, Securities, OTC Derivatives, Financial Service Providers, G-SIBs, Clearing Regime, Clearing Counterparty, Interest Rate Swaps, SFC, HKMA
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