SFC and HKMA Release Updated List of Financial Service Providers for OTC Derivatives

The
Securities
and
Futures
Commission
(SFC)
and
the
Hong
Kong
Monetary
Authority
(HKMA)
have
announced
the
completion
of
their
annual
updates
to
the
list
of
recognized
financial
services
providers
under
the
over-the-counter
(OTC)
derivatives
regulatory
regime,
according
to

apps.sfc.hk.

Annual
Review
and
Updates

The
annual
update
process
is
part
of
an
ongoing
effort
to
ensure
that
the
list
of
financial
services
providers
remains
current
and
accurate.
This
list
is
critical
for
maintaining
the
integrity
and
oversight
of
the
OTC
derivatives
market
in
Hong
Kong,
helping
to
mitigate
systemic
risks
and
enhance
market
transparency.

Importance
of
Compliance

Financial
institutions
on
this
list
are
required
to
comply
with
stringent
regulatory
standards
set
forth
by
both
the
SFC
and
HKMA.
These
standards
include
robust
risk
management
practices,
adequate
capital
reserves,
and
transparent
reporting
mechanisms.
The
updated
list
serves
as
a
crucial
reference
for
market
participants
to
identify
compliant
counterparties
for
their
OTC
derivatives
transactions.

Market
Implications

The
updates
to
the
list
are
expected
to
have
significant
implications
for
the
OTC
derivatives
market
in
Hong
Kong.
By
ensuring
that
only
compliant
and
financially
robust
institutions
are
recognized,
the
SFC
and
HKMA
aim
to
bolster
market
confidence
and
stability.
Moreover,
these
updates
are
in
line
with
international
regulatory
standards,
further
aligning
Hong
Kong’s
financial
market
with
global
best
practices.

Conclusion

The
SFC
and
HKMA’s
commitment
to
updating
the
list
of
financial
services
providers
under
the
OTC
derivatives
regulatory
regime
underscores
their
dedication
to
maintaining
a
transparent
and
stable
financial
market.
These
updates
are
essential
for
safeguarding
the
interests
of
market
participants
and
ensuring
the
overall
health
of
the
financial
system.

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source:
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