Clifford Chance

Hong Kong releases consultation paper on draft OTC derivatives mandatory reporting and record keeping rules

25 July 2014

Following the enactment of the Securities and Futures (Amendment) Ordinance (the Amendment Ordinance) in April this year, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have released a further public consultation paper (2014 Consultation Paper) containing draft rules to implement a mandatory reporting and record keeping regime for OTC derivatives.  The consultation period will end on 18 August 2014.  This new regime is expected to take effect at the earliest by the end of Q4 2014 or the beginning of 2015. The HKMA and SFC have indicated that the implementation of mandatory clearing and trading for OTC derivatives will come at a later stage. The 2014 Consultation Paper is an important part of the OTC derivatives reform as it introduces the finer details relevant to mandatory reporting of OTC derivatives that will be set out in the subsidiary legislation.

This client briefing highlights some key observations from the 2014 Consultation Paper and draws comparisons with the mandatory reporting regimes that have been introduced in other jurisdictions.

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