Featured Product

    HKMA Announces Publication of Stay Rules in Hong Kong Gazette

    June 25, 2021

    HKMA announced that the Financial Institutions (Resolution) (Contractual Recognition of Suspension of Termination Rights—Banking Sector) Rules (also known as Stay Rules) have been published in the Hong Kong Gazette. An initial period of 24 or 30 months (depending on the counterparty types) beginning from the day on which the Stay Rules come into operation has been provided for covered entities to achieve compliance with the Stay Rules. The Stay Rules will be tabled before the Legislative Council for negative vetting on July 07, 2021. Subject to the views of the Legislative Council, the subsidiary legislation should come into operation on August 27, 2021.

    The requirements under the Stay Rules support the contractual approach to giving effect to cross-border resolution actions; this complements and supports the statutory frameworks, as advocated by FSB in its principles for cross-border effectiveness of resolution actions issued in November 2015. Under the Stay Rules, covered entities must ensure that covered contracts contain a term or condition (made, or evidenced, in writing) to the effect that the parties agree in a legally enforceable manner that the parties (other than an excluded counterparty) will be bound by any suspension of termination rights in relation to the contract that may be imposed by HKMA under section 90(2) of the Financial Institutions (Resolution) Ordinance (Cap. 628). 

    In addition, HKMA and the Securities and Futures Commission (SFC) issued conclusions of a joint consultation on the annual update to the list of financial services providers under the over-the-counter (OTC) derivatives clearing regime in Hong Kong. Having considered the market feedback, HKMA and SFC will proceed with the proposed changes to the list as set out in the joint consultation paper. 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 which 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 members of the largest central counterparties offering clearing for interest rate swaps in the US, Europe, Japan, and Hong Kong. HKMA and SFC will Gazette the updated list of financial services providers during the fourth quarter of 2021, for implementation on January 01, 2022.

     

    Effective Date: August 27, 2021

    Keywords: Asia Pacific, Hong Kong, Banking, Securities, Stay Rules, OTC Derivatives, Financial Service Providers, G-SIBs, Central Counterparty, Interest Rate Swaps, Resolution Framework, SFC, HKMA

    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571