Wednesday June 20 2018
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: Hong Kong
Link: http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=18PR67
The Securities and Futures Commission (SFC) on 19th June 2018 launched a two-month consultation on proposals to impose margin requirements for non-centrally cleared over-the-counter (OTC) derivatives.
Under the proposals, a licensed corporation which is a contracting party to a non-centrally cleared OTC derivative transaction entered into with an authorised institution, a licensed corporation or another defined entity would be required to exchange margin with the counterparty if the notional amount of their outstanding non-centrally cleared OTC derivatives exceeds specified thresholds.
The consultation also specifies the instruments which would be subject to the proposed margin requirements and the assets eligible as margin.
Interested parties are invited to submit their comments to the SFC on or before 20 August 2018 via the SFC website.
Please click on the above link for more information.