SFC proposes changes to the ATS Guidelines

20 Nov 2015

The Securities and Futures Commission (SFC) today released a consultation paper on proposed changes to update the Guidelines for the Regulation of Automated Trading Services (Note 1). 

The proposals reflect regulatory and market developments and mainly cover the implementation of the regulation of over-the-counter (OTC) derivative transactions, setting out more specific requirements for central counterparties that wish to provide clearing services for OTC derivative transactions. They also align the guidelines with international standards and practices and codify existing practices.

"The proposed amendments are necessary to keep pace with market developments," said Mr Ashley Alder, the SFC's Chief Executive Officer. "They will also help prepare for the implementation of mandatory clearing, which is part of the new OTC derivatives regime."

Following the consultation, the SFC plans to implement the revised ATS Guidelines at the same time as the implementation of the subsidiary legislation for mandatory clearing obligation for OTC derivatives transactions, which is expected to be in mid-2016.

The public is invited to submit their comments to the SFC by 31 December 2015. Written comments may be sent online via the SFC website (www.sfc.hk), by email to ATSGuidelines@sfc.hk, by post or by fax to +852 2521 7917.

Page last updated : 20 Nov 2015