HKMA and SFC Announce Annual Updates to Financial Services Providers List
The
Hong
Kong
Monetary
Authority
(HKMA)
and
the
Securities
and
Futures
Commission
(SFC)
have
jointly
announced
the
completion
of
their
annual
updates
to
the
Financial
Services
Providers
(FSP)
list
under
the
over-the-counter
(OTC)
derivatives
clearing
regime,
according
to
a
recent
press
release
by
the
HKMA.
Consultation
Process
and
Market
Feedback
The
updates,
which
were
concluded
on
June
27,
2024,
were
made
following
a
thorough
consultation
process.
The
HKMA
and
SFC
considered
market
feedback
and
have
decided
to
implement
the
proposed
changes
to
the
FSP
list,
with
a
minor
modification
to
reflect
a
post-consultation
change
in
the
status
of
an
existing
FSP.
The
consultation
conclusions
paper
and
the
updated
FSP
list
can
be
accessed
on
the
websites
of
the
HKMA
and
SFC.
Criteria
for
Inclusion
The
FSP
list
includes
entities
that
meet
two
specific
criteria:
-
They
belong
to
a
group
of
companies
that
appears
on
either
the
list
of
global
systemically
important
banks
published
by
the
Financial
Stability
Board
or
the
list
of
dealer
groups
which
undertook
to
the
OTC
Derivatives
Supervisors
Group
to
work
collaboratively
with
central
counterparties,
infrastructure
providers,
and
global
supervisors
to
continue
making
structural
improvements
to
the
global
OTC
derivatives
markets. -
They
are
clearing
members
of
the
largest
central
counterparties
offering
clearing
for
interest
rate
swaps
in
the
United
States,
Europe,
Japan,
and
Hong
Kong.
Implementation
Timeline
The
updated
FSP
list
will
be
gazetted
during
the
fourth
quarter
of
2024
and
is
scheduled
for
implementation
on
January
1,
2025.
This
annual
update
is
part
of
the
HKMA’s
and
SFC’s
ongoing
efforts
to
maintain
a
robust
regulatory
framework
for
OTC
derivatives,
ensuring
the
stability
and
integrity
of
the
financial
markets.
For
more
details,
the
consultation
paper
issued
in
April
2024
can
be
viewed
here.
Image
source:
Shutterstock
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