Hong Kong optimizes the regulation of over-the-counter derivatives and plans to standardize the calculation period for the "Clearing Rules" annually.

In order to implement the regulatory regime for over-the-counter derivatives, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) today (January 29) issued a joint consultation paper standardizing the calculation periods under the "Clearing Rules" annually. Under the current practice, the existing list of calculation periods specified in the "Clearing Rules" needs to be regularly updated to comply with the requirement for central clearing of over-the-counter derivative transactions. To further enhance the operational efficiency of the "Clearing Rules," the HKMA and SFC propose to designate a standard calculation period for each year from March 1, 2027. The HKMA and SFC have been committed to strengthening the regulatory regime for over-the-counter derivatives in Hong Kong, and the proposed revisions will help derivatives traders more clearly identify future calculation periods to ensure compliance.