SFC issues a joint HKMA-SFC consultation on the OTC derivatives regulatory regime


Hong Kong SFC

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) today issued a joint consultation on the prescription of additional markets and clearing houses, and the prescription of Delta One Warrants, for the purpose of the over-the-counter (OTC) derivatives regulatory regime.

This consultation is in response to a recent request from market participants that certain products be excluded from the upcoming second phase of mandatory reporting.

The proposed prescriptions seek to address the concerns raised by excluding the following products from the definition of “OTC derivative product”, and consequently from the mandatory reporting obligation:

  • products traded on, and cleared through, the additional markets and clearing houses proposed to be prescribed; and
  • Delta One Warrants, a certain type of warrant with a strike price set at zero or near zero.

Interested parties are invited to submit comments to the HKMA or the SFC by 26 May 2017.

The joint consultation paper can be downloaded from the websites of the HKMA or the SFC.

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SFC issues a joint HKMA-SFC consultation on the OTC derivatives regulatory regime

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