The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) issued a joint consultation on the annual update to the list of Financial Services Providers (FSP List) under Hong Kong’s over-the-counter (OTC) derivatives clearing regime. The regulators propose adding one entity to the FSP List, with the update scheduled to take effect on 1 January 2026 if adopted. The FSP concept is used in the clearing regime to identify major OTC derivatives dealers outside Hong Kong. Central clearing is required for certain transactions conducted between an FSP and a prescribed person, namely an authorized institution, an approved money broker, or a licensed corporation. Entities included on the FSP List must (i) belong to a group appearing on the Financial Stability Board’s global systemically important banks list or on the OTC Derivatives Supervisors Group dealer groups list, and (ii) be clearing members of the largest central counterparties offering interest rate swap clearing in the United States, Europe, Japan and Hong Kong. Comments are due to the HKMA or the SFC by 16 May 2025.
Hong Kong Monetary Authority 2025-04-17
Hong Kong Monetary Authority and Securities and Futures Commission consult on adding one entity to OTC derivatives Financial Services Providers list
The Hong Kong Monetary Authority and the Securities and Futures Commission have launched a joint consultation to update the Financial Services Providers List under Hong Kong's OTC derivatives clearing regime. The proposal includes adding one entity to the list, effective 1 January 2026, if approved. The FSP List identifies major OTC derivatives dealers outside Hong Kong, requiring central clearing for certain transactions with authorized institutions, approved money brokers, or licensed corporations.