HKMA and SFC begin consultation on OTC reporting

Hong Kong's central bank and securities regulator have started a joint one-month consultation on requirements relating to OTC derivatives reporting.

The Hong Kong Monetary Authority and the Securities and Futures Commission have started a one-month consultation on requirements relating to reporting and record keeping obligations under new global OTC derivatives rules.

The new regulatory regime for OTC derivatives appeared in Hong Kong’s Securities and Futures (Amendment) Ordinance 2014.  Following consultation, new requirements will be set out in additional legislation. 

The proposals are being developed in line with similar reforms in other major financial markets, and with input from the industry in Hong Kong.

The proposals cover which types of transactions have to be reported, who will be subject to reporting and what exemptions will apply.

The suggestions also include reporting timeframes and applicable grace periods, plus the form and contents of reports as well as related record keeping obligations.

Hong Kong authorities said that this consultation will be the first of a series on the detailed rules for implementing new OTC derivatives regulations.