HKMA Consults on Revised FSP List Under OTC Derivatives Regime
HKMA and the Securities and Futures Commission (SFC) issued a joint consultation on the annual update to the list of Financial Services Providers (FSP) under the over-the-counter (OTC) derivatives clearing regime. Eight additional entities are proposed to be included on the list. These entities are Bank of China (UK) Ltd, BofA Securities Inc., Citibank Europe Plc, Mizuho Securities USA LLC, TD Bank, N.A, TD Bank USA, N.A., The Toronto-Dominion Bank, and UBS Switzerland AG. One service provider under the clearing regime changed its name—that is, Abbey National Treasury Service plc changed its name to Santander Financial Services Plc. The revised list of Financial Services Providers is included in the Annex to the consultation. The list of Financial Services Providers will become effective on January 01, 2021. Interested parties are invited to submit comments to HKMA or SFC by April 28, 2020.
The list includes entities that meet the following two criteria:
- They belong to a group of companies appearing on the list of global systemically important banks (G-SIBs) published by FSB, 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.
- They are members of the largest central counterparties offering clearing for interest rate swaps in the US, Europe, Japan, and Hong Kong.
Comment Due Date: April 28, 2020
Keywords: Asia Pacific, Hong Kong, Banking, Securities, OTC Derivatives, Financial Services Providers, G-SIBs, Clearing Regime, SFC, FSB, HKMA
Next Article
ECB Amends Guideline on Euro Short-Term RateRelated Articles
EC Rule on Contractual Recognition of Write Down and Conversion Powers
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
APRA Issues Further Guidance on Application of Securitization Standard
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
SRB Provides Update on Approach to Prior Permissions Regime
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
HKMA Endorses Industry Guidance to Support LIBOR Transition
The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
OCC Issues Booklet on Supervision of Problem Banks
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.
