Circular to Licensed Corporations on Reporting of Over-the-counter (OTC) Derivatives Transactions

1 Jun 2017



Phase 2 mandatory reporting of OTC derivatives transactions will commence shortly on 1 July 2017. This covers reporting of transactions in all 5 major asset classes (interest rate, foreign exchange, equity, credit and commodity) of OTC derivatives products, as well as reporting of valuation information. We wish to remind Licensed Corporations who will be subject to phase 2 reporting obligation that they should have their reporting systems and relevant operations ready before 1 July 2017.

Licensed Corporations that will be subject to mandatory reporting must sign up for the reporting service of Hong Kong Trade Repository (HKTR) and complete a scenario test and a product specific test (simulation test – part 1 and part 2) (including entities which intend to report via an agent) before they will be accepted for reporting.  Those who have already signed up and completed a scenario test under phase 1 mandatory reporting are also required to complete a product specific test (simulation test – part 2) in order to be accepted by the HKTR for reporting additional OTC derivatives products under phase 2 reporting. Licensed Corporations who will need to report under phase 2 reporting but have not signed up for HKTR’s reporting services, or have not enrolled in simulation tests, are advised to contact HKTR immediately.

Licensed Corporations must also make sure that their reporting agents, if any, meet all technical requirements specified by the HKTR.  They must also test the trade submission process with their agents and file the declaration form on the readiness of reporting via their agents before these agents can be accepted for reporting on their behalf.

In the meantime, Licensed Corporations who encounter or foresee any technical difficulties in complying with phase 2 reporting obligation should contact their respective relationship manager of the Intermediaries Supervision Department of the Commission immediately.

If you have any questions regarding the substance of the reporting requirements, please call (852) 2231 1788 or email otc_enquiries@sfc.hk. For questions about the service and operation of the electronic reporting system, or about training and simulation tests, please contact the HKTR on (852) 8100 3115 or email hktr@hkma.gov.hk.


Supervision of Markets Division
Securities and Futures Commission

 


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Page last updated : 1 Jun 2017