The Hong Kong Monetary Authority and the Securities and Futures Commission Issue Guidance on Reporting of OTC Derivatives

The Hong Kong Monetary Authority ("HKMA") and the Securities and Futures Commission ("SFC") jointly issued a report ("Conclusions Paper") on the reporting of OTC derivatives transactions in Hong Kong.

The Conclusions Paper is based on comments received regarding the agencies' July 2014 joint consultation paper on Securities and Futures ("OTC Derivatives Transactions – Reporting and Record Keeping") Rules (the "Consultation Paper"). The Consultation Paper solicited comments on the following key proposals regarding the OTC derivatives market:

• types of transactions that will have to be reported;
• types of persons who will be subject to reporting;
• types of exemptions and reliefs that may apply;
• reporting timeframes and grace periods;
• the form, manner and content of reports; and
• related mandatory recordkeeping obligations.

In the Conclusions Paper, HKMA and SFC determined not to require the reporting of OTC derivatives transactions by fund managers with Type 9 licenses at this time. Instead, HKMA and SFC will take into consideration the comments received on the issue should they decide to implement this reporting obligation.

See: Conclusions Paper; July 2014 Consultation Paper.Related news: MFA Submits Comments to Foreign Regulators regarding (i) EMIR and (ii) Reporting and Recordkeeping for OTC Derivatives (August 18, 2014).