HONG KONG: SFC Consults on Risk Management Guidelines for Futures Dealing Activities

Friday November 25 2022

On 25^th November 2022, the Securities and Futures Commission (SFC) has launched a consultation on proposed risk management guidelines for licensed futures brokers.

The proposed guidelines mainly include qualitative requirements for the control and management of key risks arising from futures dealing activities. Key proposals include requiring futures brokers to set prudent client risk limits and comply with additional requirements relating to commodity futures. They would also be required to conduct due diligence reviews of executing or clearing agents, safeguard client assets more properly, and put in place controls relating to trading in futures markets and handling client assets outside Hong Kong.

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