HKMA and SFC finalise OTC derivatives clearing rule amendments
HKMA and SFC issued joint consultation conclusions standardising calculation periods under the OTC derivatives Clearing Rules.
Standardisation reduces ambiguity in determining clearing obligations across calculation periods. Firms with OTC derivative clearing obligations in HK should align internal threshold-monitoring processes and documentation accordingly.
Affects scope and timing of mandatory clearing determinations for HK-regulated derivatives participants.
Action Required
Update OTC derivatives clearing compliance calendars and Prescribed Day monitoring to reflect standardised calculation periods.
Clearing rule amendments materially shape derivatives compliance operations for dealers and buy-side participants.
Update OTC clearing policy and procedures to reflect new Calculation Periods and Prescribed Days. Confirm regulatory change management captured in RCSA.
“HKMA and SFC issued joint consultation conclusions on standardising the calculation periods each year under the Clearing Rules for the OTC derivatives regulatory regime. Respondents broadly supported the proposed approach for future Calculation Periods and Prescribed Days.”