The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have published consultation conclusions on the draft rules for mandatory reporting of over-the-counter (OTC) derivatives and related record keeping. The draft rules have been amended, taking into account the comments received and providing greater clarity to the proposed regulatory regime.Among others, the implementation of the reporting requirements on “Hong Kong persons” and asset managers has been deferred, and the record keeping period has been shortened from 7 years to 5 years. Market participants will also welcome the extension of the concession period for setting up a reporting channel to the HKMA and the grace period for backloading historical transactions, both by three months.
In the paper setting out the consultation conclusions, the HKMA and the SFC further consult on three ancillary issues, requesting comments by 23 December 2014.
The draft rules are targeted to be introduced into the Legislative Council (LegCo) during the first quarter of 2015, to come into effect in the same quarter. The HKMA and the SFC also aim to launch the initial consultation on mandatory clearing and related record keeping requirements at around the same time.
To read a more detailed briefing from our FSR team in Hong King, click here.
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