HKMA and SFC consult on annual updates to Financial Services Providers list under OTC derivatives regulatory regime


The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) today (April 19) issued a joint consultation on the annual update to the list of Financial Services Providers (FSP) under the over-the-counter (OTC) derivatives clearing regime (Note). 

     The concept of FSP has been introduced to the clearing regime to identify major OTC derivatives dealers outside Hong Kong. Central clearing is required for certain transactions conducted between an FSP and a prescribed person (i.e., an authorized institution, an approved money broker or a licensed corporation).

     Proposed changes to the list include adding one entity and updating the name of another.

     Interested parties are invited to submit comments to the HKMA or SFC by May 17,2024. The joint consultation paper can be downloaded from the websites of the HKMA or SFC.
Note: The list includes entities that meet the following two criteria:
(i) They belong to a group of companies that appears on either the list of global systemically important banks published by the Financial Stability Board, or the list of dealer groups which undertook to the OTC Derivatives Supervisors Group to work collaboratively with central counterparties, infrastructure providers and global supervisors to continue to make structural improvements to the global OTC derivatives markets; and
(ii) They are clearing members of the largest central counterparties offering clearing for interest rate swaps in the United States, Europe, Japan and Hong Kong.

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