Circular to all licensed corporations on consultation conclusions and further consultation on proposed changes to the Securities and Futures (Financial Resources) Rules

24 Jul 2017

The Securities and Futures Commission (SFC) today published consultation conclusions on proposed changes to the Securities and Futures (Financial Resources) Rules (FRR). 

The SFC concludes the July 2015 consultation on the proposed regulatory capital regime for licensed corporations engaged in over-the-counter derivatives activities together with certain changes relating to other areas of the FRR, which include the May 2011 proposal to update the list of specified exchanges in the FRR.

In summary, the following proposals will be implemented subject to certain modifications:

The SFC also seeks to further consult on a number of modified and additional FRR proposals, such as reducing the minimum capital requirements for fund managers’ central dealing desks which meet certain conditions, adding four Mainland commodity exchanges to the list of specified exchanges in the FRR, recognising credit ratings issued by Fitch Ratings and extending the transitional period for full compliance with the new FRR requirements by licensed corporations engaging in certain types of regulated over-the-counter derivatives activities from six months to one year. This consultation also covers a set of draft FRR amendments for implementing those proposals which are not specific to over-the-counter derivatives activities.

The one-month consultation period ends on 23 August 2017. Interested parties are invited to submit their written comments to the SFC online via the SFC website (, by email to, by post or by fax to 2523 4598.

Please refer to the SFC’s press release and the consultation conclusions and further consultation paper for details.

Press release:

Consultation conclusions and further consultation paper:

Intermediaries Supervision Department
Intermediaries Division
Securities and Futures Commission



  1. Reduction of the fixed minimum capital requirements would be available to licensed corporations engaging in lower levels of over-the-counter derivatives activities or only in certain centrally-cleared over-the-counter derivatives dealing activities.


Click here to download the document

Page last updated : 24 Jul 2017