Hong Kong SFC Launches Consultation on Margin Requirements for Non-Centrally Cleared OTC Derivatives
Hong Kong’s Securities and Futures Commission (SFC) has launched a 2-month consultation on proposals to impose margin requirements for non-centrally cleared over-the-counter (OTC) derivatives.
” Hong Kong SFC Launches Consultation on Margin Requirements for Non-Centrally Cleared OTC Derivatives “
Under the proposals, a licensed corporation or another defined entity would be required to exchange margin with the counterparty if the notional amount of their outstanding non-centrally cleared OTC derivatives exceeds specified thresholds. (a licensed corporation is a contracting party to a non-centrally cleared OTC derivative transaction entered into with an authorised institution)
The consultation also specifies the instruments which would be subject to the proposed margin requirements and the assets eligible as margin.
Interested parties are invited to submit their comments to the SFC on or before 20 August 2018 via the SFC website (www.sfc.hk), by email ([email protected])
Ashley Alder, the SFC’s Chief Executive Officer:
“The SFC works closely with other local and international authorities to put in place a legal and regulatory framework to implement the G20 commitments to reform OTC derivatives markets. These proposals are part of comprehensive reforms to implement international standards and enhance Hong Kong’s regulatory regime for OTC derivatives activities.”
Source: SFC
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