Securities & Futures Commission of Hong Kong

List of comparable OTCD jurisdictions

Paragraphs 20.2 to 20.4 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (Code of Conduct) set out requirements to address conduct risks posed by over-the-counter (OTC) derivative dealings with group affiliates. Different treatments are provided depending on whether a group affiliate or the client introduced to a group affiliate is or is not a licensed corporation (LC), an authorized financial institution (AFI), or a corporation similarly regulated as an OTC derivative dealer or a bank in a comparable OTCD jurisdiction (similarly regulated corporation).

Under paragraph 20.5 of the Code of Conduct, the Securities and Futures Commission (SFC) will publish a list of comparable OTCD jurisdictions. However, the SFC noted that the status of the implementation of the OTC derivative market reforms varies in different jurisdictions. For this reason, and in order to facilitate LCs' preparation for compliance with relevant requirements, the following list of deemed comparable OTCD jurisdictions1 is published in the interim.

The list specifies the regulatory authority(ies) of each jurisdiction whose regulatory framework for OTC derivative dealing activities is deemed to be comparable to Hong Kong's.  For the purposes of paragraphs 20.2 to 20.4 of the Code of Conduct, a corporation is considered to be a similarly regulated corporation, if it is regulated, in respect of its OTC derivative dealing activities, as an OTC derivative dealer or a bank by a regulatory authority specified in the list in a way which is similar to how an LC or an AFI (as the case may be) is regulated in Hong Kong.

Regulatory Authority
Australia Australian Prudential Regulation Authority
Australian Securities and Investments Commission
Canada Office of the Superintendent of Financial Institutions
Ontario Securities Commission
Autorité des marchés financiers
The Mainland China Banking and Insurance Regulatory Commission
China Securities Regulatory Commission
France Autorité de Contrôle Prudentiel et de Résolution
Autorité des marchés financiers
Germany Federal Financial Supervisory Authority
Italy  Bank of Italy
Commissione Nazionale per le Società e la Borsa
Japan Financial Services Agency
Netherlands De Nederlandsche Bank
The Dutch Authority for the Financial Markets
The Republic of Korea Financial Supervisory Service
Financial Services Commission
Singapore Monetary Authority of Singapore
Spain Banco de España
Comisión Nacional del Mercado de Valores
South Africa South African Reserve Bank
Financial Sector Conduct Authority
Switzerland Swiss Financial Market Supervisory Authority
United Kingdom Prudential Regulation Authority
Financial Conduct Authority
United States of America The Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Commodity Futures Trading Commission
Securities and Exchange Commission

1The list is subject to review and update by the SFC from time to time in view of the legal, regulatory and other developments in each jurisdiction and internationally. If a deemed comparable OTCD jurisdiction is excluded from the final list, sufficient time will be allowed for the affected LCs to make the necessary arrangements to comply with the related requirements.

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