Hong Kong SFC introduces new Code of Conduct requirements on OTC derivative risk mitigation and client clearing and to address risks posed by group affiliates

On 12 December 2018, the Securities and Futures Commission published the conclusions to its consultation on refinements to the over-the-counter derivatives regime and to require licensed corporations to properly manage financial exposure to connected persons. The consultation conclusions cover the proposed requirements under the SFC Code of Conduct with respect to risk mitigation requirements on OTC derivatives, client clearing and conduct requirements to address risks posed by group affiliates. 

Click here for our client alert discussing the new Code of Conduct requirements.