Featured Product

    HKMA and SFC Consult on Enhancing OTC Derivatives Regulatory Regime

    March 27, 2018

    HKMA and SFC issued a joint consultation paper on further enhancements to the over-the-counter (OTC) derivatives regulatory regime in Hong Kong. The paper proposes to mandate the use of a Legal Entity Identifier (LEI) for reporting obligation, expand the clearing obligation, and adopt a trading determination process for introducing a platform trading obligation. Comments are invited by April 27, 2018.

    To align with global standards, all entities contained in a transaction report to be submitted to the Hong Kong Trade Repository would be required to be identified by their LEI. The timeline for implementation will be staggered for different types of entities. As the second phase of the OTC derivatives clearing regime, the regulators propose to expand the clearing obligation to specified standardized interest rate swaps denominated in Australian Dollars. The paper also sets out proposed factors for determining the products that would be appropriate for a platform trading obligation in Hong Kong.

    In line with the G20 commitment to reform the OTC derivatives market, HKMA and SFC have been working on implementing a regulatory regime for OTC derivatives in Hong Kong. The regime provides for the introduction of reporting, clearing, trading, and recordkeeping obligations in respect of OTC derivative transactions. In line with other markets, the OTC derivatives regulatory regime is being implemented in phases. Phase 1 reporting came into force on July 10, 2015 and Phase 2 Reporting on July 01, 2017 while Phase 1 clearing became effective on September 01, 2016.

     

    Comment Due Date: April 27, 2018

    Keywords: Asia Pacific, Hong Kong, Securities, OTC Derivatives, Reporting, LEI, Clearing Obligation, SFC, HKMA

    Featured Experts
    Related Articles
    News

    OSFI Publishes Instruction Guide on Solvency Information Return

    OSFI published an instruction guide to assist administrators of pension plans in completing the Solvency Information Return that is required to be filed with OSFI.

    January 17, 2020 WebPage Regulatory News
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    ISDA Paper Examines Legal Aspects of Smart Contracts Using Blockchain

    ISDA published a paper that discusses legal aspects of smart derivatives contracts that use the distributed ledger technology (DLT), which is also commonly known as the blockchain technology.

    January 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4505