HKMA and SFC Publish Draft Rules Introducing Mandatory Clearing and Expanding Mandatory Reporting for OTC Derivatives
HKMA and SFC Publish Draft Rules Introducing Mandatory Clearing and Expanding Mandatory Reporting for OTC Derivatives
Introduction
In February 2016, the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) published conclusions to a joint consultation on introducing mandatory clearing and expanding mandatory reporting for the second stage of the over-the-counter (OTC) derivatives regulatory regime (the “February 2016 Consultation Conclusions”).
The publication of the February 2016 Consultation Conclusions is part of a larger scheme among global financial regulators aiming to introduce global standards in relation to clearing and reporting of OTC derivatives to increase transparency and reduce counterparty risk.
The February 2016 Consultation Conclusions are the response to feedback and opinion on the joint consultation paper published in September 2015 (September 2015 Consultation Paper) by the regulatory bodies on revising the Hong Kong OTC derivative’s regime to introduce mandatory clearing and expanding mandatory reporting. Read more