HONG KONG: SFC Publishes Circular on Clearing and Record Keeping Rules for the OTC Derivatives Regime

Tuesday December 5 2023

On 1^st December 2023, the Securities and Futures Commission (SFC) published a revised list of persons designated as financial services providers (FSPs) for the purposes of the Securities and Futures ((OTC) over-the-counter Derivative Transactions—Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules (Clearing Rules) is gazetted and becomes effective on 1^st January 2024.

Licensed Persons are reminded that if their average total position in OTC derivatives during a Calculation Period reaches the corresponding Clearing Threshold, relevant OTC derivative transactions they enter on and after the corresponding Prescribed Day, including those with FSPs must be centrally cleared in accordance with the Clearing Rules.

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