Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority have issued a joint consultation on the annual update to the Financial Services Providers (FSP) List under Hong Kong’s over-the-counter (OTC) derivatives clearing regime. Following their annual review, they propose adding one entity so the list remains relevant and appropriate, with the update scheduled to take effect on 1 January 2026 if adopted. The FSP concept identifies major OTC derivatives dealers outside Hong Kong, and central clearing is required for certain transactions between an FSP and a prescribed person, namely an authorised institution, an approved money broker or a licensed corporation. To qualify for inclusion, an entity must belong to a group that appears on the Financial Stability Board’s global systemically important banks list or the list of dealer groups that undertook to the OTC Derivatives Supervisors Group to work on structural improvements to global OTC derivatives markets, and it must be a clearing member of the largest central counterparties offering interest rate swaps clearing in the United States, Europe, Japan and Hong Kong. Comments are due by 16 May 2025 and can be submitted to either the Securities and Futures Commission or the Hong Kong Monetary Authority.
Hong Kong Securities & Futures Commission 2025-04-17
Hong Kong Securities and Futures Commission and Hong Kong Monetary Authority consult on adding one entity to the OTC derivatives Financial Services Providers list
The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority have launched a joint consultation on updating the Financial Services Providers List under Hong Kong’s OTC derivatives clearing regime. The proposal includes adding one entity, with changes effective from 1 January 2026 if approved. The FSP concept targets major OTC derivatives dealers outside Hong Kong, requiring central clearing for specific transactions with authorised institutions, approved money brokers, or licensed corporations.