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HKMA and SFC launch consultation on new OTC derivatives reporting rules

Nurdianah Md Nur | July 21, 2014
The new rules aim to enhance the financial market stability by increasing transparency in the OTC derivatives market.

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) began a month-long consultation on the mandatory reporting and related record keeping obligations under the new over-the-counter (OTC) derivatives regime. 

The new regulatory regime for OTC derivatives is reflected in the Securities and Futures (Amendment) Ordinance 2014, which was enacted by the Legislative Council in April 2014.

According to HKMA's press statement, the new reporting rules aim to enhance the financial market stability by increasing transparency in the OTC derivatives market. The proposals were developed in line with similar reform efforts in other major financial markets and with input from the industry.

The key proposals will cover the types of transactions that need to be reported; the people who are required to make the report; the form, manner and content of reports; and the exemption and relief that may apply.

The joint consultation paper is now available on HKMA's and SKF's websites.  Interested parties are invited to submit their comments to the HKMA or the SFC before 18 August 2014. 

 

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