The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) today (April 17) issued a joint consultation on the annual update to the list of Financial Services Providers (FSP List) under the over-the-counter (OTC) derivatives clearing regime (Note).  
      
     Based on the latest annual review, the regulators proposed adding one entity to the FSP list to ensure the list remains relevant and appropriate. The update, if adopted, is scheduled to take effect on January 1, 2026.
      
     The concept of FSP has been introduced to the clearing regime to identify major OTC derivatives dealers outside Hong Kong. Central clearing is required for certain transactions conducted between a major dealer outside Hong Kong (i.e. an FSP) and a prescribed person (i.e. an authorized institution, an approved money broker or a licensed corporation).
      
     Interested parties are invited to submit comments to the HKMA or the SFC by May 16, 2025. The joint consultation paper can be downloaded from the websites of the HKMA or the SFC.
      
Note: The FSP List includes entities that meet the following two criteria:
(a) They belong to a group of companies that appears on either the list of global systemically important banks published by the Financial Stability Board, or the list of dealer groups which undertook to the OTC Derivatives Supervisors Group to work collaboratively with central counterparties, infrastructure providers and global supervisors to continue to make structural improvements to the global OTC derivatives markets; and
(b) They are clearing members of the largest central counterparties offering clearing for interest rate swaps in the United States, Europe, Japan and Hong Kong.

Ends/Thursday, April 17, 2025
Issued at HKT 16:15

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