Clearing the way: Hong Kong gears up for mandatory clearing and expanded mandatory reporting of OTC derivatives

Clearing and reporting: next stage of consultation

You may remember that, in September last year, the HKMA and SFC published a consultation paper on their proposed next steps on the regulation of OTC derivative transactions. That paper focused on clearing and reporting, with draft rules for both, and we summarised its contents for you at the time.

In that paper, the regulators promised to consider comments from the public on the rules, and to release a further consultation paper containing proposed final versions of the rules early this year.

In February, the regulators published that further paper, being the Consultation conclusions and further consultation on introducing mandatory clearing and expanding mandatory reporting.

The proposed final clearing rules and reporting rules remain largely the same as initially drafted. That being said, the revised rules have implemented some of the comments received, and the regulators responded to some of the comments that were not implemented.

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