FSB Completes Peer Review of Hong Kong

The peer review finds that good progress has been made in recent years on both topics, reflecting Hong Kong’s strong commitment to implementing international standards, driven by its status as an international financial center. The authorities have put in place a well-defined legal and regulatory framework—in terms of scope, assignment of responsibilities, and enforcement—to implement the G20 commitments to reform OTC derivatives markets. Considerable progress has been made in implementing some OTC derivatives reform areas—trade reporting, central clearing, margin/capital requirements for non-centrally cleared derivatives—while work is underway to implement the remaining areas and measures. A comprehensive cross-sectoral resolution regime with a broad range of powers and a statutory framework for the recognition of cross-border resolution actions was introduced in 2017. The review concludes that there is additional work to be done in both the areas and offers recommendations to the Hong Kong authorities to address these issues.

Related Link: Peer Review Report on Hong Kong

Keywords: Asia Pacific, Hong Kong, Banking, Securities, Insurance, Peer Review, OTC Derivatives, Resolution Framework, FSB