HKMA and SFC consult on further enhancements to the OTC derivatives regime in Hong Kong: UTIs, masking relief and list of financial service providers

On 26 April 2019, the Hong Kong Monetary Authority and the Securities and Futures Commission launched a joint consultation1 on proposals to enhance the over-the-counter (OTC) derivatives regime in Hong Kong; in particular, (i) to mandate the use of unique transaction identifiers (“UTIs”) for the reporting obligation, (ii) to revise the list of designated jurisdictions for the masking relief of the reporting obligation and (iii) to update the list of financial services providers (“FSPs”) under the clearing obligation.

Deadline for submitting comments to the regulators is 25 May 2019 for the proposal on updating the list of FSPs and 25 June 2019 for the other two proposals.

The proposals will require system enhancements and modifications for entities subject to the reporting or clearing obligations in Hong Kong. Market participants are advised to consider the proposals and their implementation plans within the timing proposed by the HKMA/SFC and respond to the regulators with any comments or concerns.


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