The Hong Kong Securities and Futures Commission (SFC) launched a public consultation on draft amendments to the Securities and Futures (Financial Resources) Rules and related guidelines to implement internationally comparable capital requirements for licensed corporations engaging in over-the-counter derivative activities. The package also proposes broader Financial Resources Rules changes intended to support licensed corporations’ business development and diversification, while publishing conclusions on certain Financial Resources Rules changes previously consulted on. The proposed over-the-counter derivatives capital requirements have been refined to reflect recent updates to Hong Kong’s Banking (Capital) Rules and the Basel Framework. The consultation also proposes significantly lowering capital requirements for inter-dealer brokers and simplifying transfer pricing treatments for licensed corporations, reflecting feedback received in the SFC’s 2017 consultation. Additional changes include measures to facilitate trading in stocks in Mainland China and emerging markets, commodities and carbon products, and digital asset futures and options on licensed virtual asset trading platforms. To support the development of Hong Kong’s inter-dealer repurchase market, the SFC also proposes exempting capital requirements for centrally-cleared repurchase transactions cleared through SFC-approved central counterparties. Written comments are due by 13 October 2025.

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