SFC Publishes Consultation Conclusions on OTC Derivatives and Conduct Risks

Published 11 January 2019 by Charltons

Introduction

On 12 December 2018, Hong Kong’s securities regulator, the Securities and Futures Commission (SFC) issued its consultation conclusions[1] on amendments to the Hong Kong code of conduct for Persons Licensed by or Registered with the Securities and Futures Commission (Hong Kong Code of Conduct) to:

  • introduce new requirements on over-the-counter (OTC) derivatives in relation to derivative risk mitigation and client clearing;
  • impose conduct requirements to address risks posed by group affiliates; and
  • make a consequential amendment on client agreement requirements (Consultation Conclusions).

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