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The Hong Kong Monetary Authority and the Securities and Futures Commission are on course to implement the first phase of the new over-the-counter derivatives regime in July 2015.  This includes:

  1. the implementation of the broad framework of the new regulatory regime under the Securities and Futures Ordinance; and
  2. the introduction of mandatory reporting requirements and related record keeping obligations, via the Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules , for a specified range of OTC derivative products, namely, certain types of interest rate swaps and non-deliverable forwards.

The Reporting Rules and other related subsidiary legislation have been tabled before the Legislative Council and are targeted to come into effect on 10 July 2015, together with the relevant provisions of the SFO.

It is intended that this first phase of implementation will apply to the regulated entities, ie, authorised institutions, approved money brokers, licensed corporations and central counterparties operating in Hong Kong.  To read more from our team in Hong Kong, click here.


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