Kong has reached a modest milestone in its journey to comply with G20 OTC
derivatives rules. However, it still has a long way to go before the task is
Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission
(SFC) have published conclusions on a joint consultation regarding the scope of
OTC derivatives activities to be regulated, and the oversight of systemically
SFC and HKMA consider that respondents to the consultation support the
proposals and recognise the need to extend Hong Kong’s licensing regime so that
it adequately covers intermediaries conducting OTC derivatives activities.
also support the HKMA and the SFC being allowed to wield sufficient regulatory
powers in respect of participants, given the perceived risk they may pose to
the financial stability of markets.
plan is to introduce transitional arrangements for implementing the new
licensing regime and some respondents said they were concerned that the
duration of the transitional arrangements might be too short, and the
eligibility to benefit from them was not clear.
proposals have been incorporated into a bill that was introduced into the
Legislative Council in July 2013. More consultation is planned for later