Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), has published its annual report and accounts, discussing developments with derivatives and automated trading services in Hong Kong.
The SFC said that it continues to prepare for the expected launch of a new regulatory regime governing OTC derivatives activities during 2014.
The SFC worked with the Hong Kong Monetary Authority (HKMA) and the Government of Hong Kong to introduce legislative amendments in the Securities and Futures (Amendment) Bill 2013. The Bill was passed in March 2014.
The SFC published consultation conclusions with the HKMA on proposed regulatory and oversight arrangements for OTC derivatives market participants in September 2013. In collaboration with the HKMA, the SFC plans to start consulting the market on subsidiary legislation later this year. The first phase of the consultation will focus on mandatory reporting.
In October 2013 the SFC approved the application of OTC Clearing Hong Kong Limited (OTC Clear) as a recognised clearing house for OTC derivatives transactions. OTC Clear commenced operation on 25 November 2013.
In automated trading services, the SFC said it had approved four automated trading services (ATS) applications and it withdrew three authorisations from overseas exchanges/clearing house and one authorisation from a local exchange. The total number of authorised ATS providers remains unchanged over the year at 30.
Among other interesting report highlights are details of the SFC’s executive directors’ remuneration. They earn between HK$6-7 million each, with CEO Ashley Alder at HK$9 million and chairman Carlson Tong at HK$1 million.