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Clifford Chance

Clifford Chance


Hong Kong enacts its primary legislation relating to the proposed changes to the regulatory regime for the Hong Kong OTC derivatives market

10 April 2014

Hong Kong has now enacted its primary legislation concerning reform of the OTC derivatives market in line with the agenda set down by the G20. The Securities and Futures (Amendment) Bill was enacted on 3 April 2014 as the Securities and Futures (Amendment) Ordinance ("Amendment Ordinance"). The Amendment Ordinance provides for a broad regulatory framework designed to implement the proposals set out in (i) the Hong Kong Monetary Authority ("HKMA") and the Securities and Futures Commission ("SFC") joint consultation conclusions for the new regulatory regime for the OTC derivatives market in Hong Kong published in 2012 and (ii) the HKMA and SFC joint supplemental consultation conclusions published in 2013. While the Amendment Ordinance provides an outline of the mandatory reporting, clearing and trading obligations to be introduced for OTC derivatives, further details (in the form of subsidiary legislation) will be required before such mandatory obligations become effective.

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