The Hong Kong Monetary Authority and the Securities and Futures Commission have issued joint consultation conclusions on changes to the Clearing Rules for the over the counter derivatives regime, confirming plans to standardise the annual calculation periods used to determine whether a person is subject to the mandatory clearing obligation. The authorities said this will replace the current approach under which the list of calculation periods must be updated regularly through legislative amendments. From 1 March 2027, the amended rules would designate two calendar periods each year as calculation periods, running from 1 March to 31 May and from 1 September to 30 November. Under the Clearing Rules, these periods are used to assess the size of a person's applicable position in relevant OTC derivative transactions for clearing purposes. Respondents broadly supported the proposal, with the authorities noting that it should improve certainty on the clearing obligation and help market participants plan more effectively. The Hong Kong Monetary Authority and the Securities and Futures Commission will now proceed with the legislative process and aim to bring the amendments into effect on 1 March 2027.
Hong Kong Monetary Authority2026-06-05
Hong Kong Monetary Authority and Securities and Futures Commission confirm standard annual calculation periods for OTC derivatives clearing rules from 1 March 2027
The Hong Kong Monetary Authority and the Securities and Futures Commission have issued joint consultation conclusions confirming changes to the Clearing Rules for the OTC derivatives regime to standardise annual calculation periods for the mandatory clearing obligation. From 1 March 2027, two fixed calendar periods (1 March to 31 May and 1 September to 30 November) will be used each year to assess a person’s applicable positions in relevant OTC derivative transactions, replacing the current approach of updating calculation periods via legislative amendments. The authorities will proceed with the legislative process, citing broad industry support and expected improvements in certainty and planning.