HONG KONG: Conclusions on further proposals for regulating OTC derivatives market

Friday September 6 2013

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have jointly published conclusions on a joint supplemental consultation regarding the proposed scope of activities to be regulated under the new over-the-counter (OTC) derivatives regime, and regulatory oversight of systemically important participants.

The conclusions paper summarises the comments received and the responses of the HKMA and the SFC to these comments. It also notes that further work is necessary and is being conducted to implement the new OTC derivatives regime.

The revised proposals have been incorporated into the relevant Amendment Bill that sets out the legislative amendments for the proposed OTC derivatives regime. The Bill was introduced into the Legislative Council in July 2013. Separately, the HKMA and the SFC are working on the detailed requirements under the new regime, which will be set out in subsidiary legislation, and plan to conduct a public consultation on these later this year.