Update on reporting and record keeping rules for OTC derivatives

15 May 2015



The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) today released conclusions on the further consultation on mandatory reporting and related record keeping obligations under the new over-the-counter (OTC) derivatives regime (Note 1). Proposals on certain aspects of the reporting regime were revised after taking into account market feedback.

Highlights include:

The revised Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules attached to the conclusions paper are gazetted today and will be tabled before the Legislative Council on 20 May 2015 for negative vetting. A set of FAQs has also been prepared to help market participants better understand how the rules operate.  These remain in draft form pending enactment of the rules.

The conclusions paper and FAQs (in draft form) can be downloaded from the HKMA website or the SFC website.

End

Note:

  1. On 18 July 2014, the HKMA and the SFC commenced a one-month public consultation on the Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules. Thereafter, on 28 November 2014, the HKMA and the SFC issued the Consultation Conclusions and Further Consultation on the Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules. The further consultation, which ended on 23 December 2014, sought further views on three ancillary matters relating to (i) the reporting of valuation transaction information (including the details of this requirement and the proposed implementation timetable); (ii) the designation of a list of jurisdictions for the purpose of the masking relief; and (iii) the list of stock markets, futures markets and clearing houses to be prescribed for the purposes of defining the scope of the OTC derivatives regime.


Page last updated : 15 May 2015