ΜΑΡ-ΗΚΜΑ-DTR: Hong Kong Monetary Authority derivatives transaction reporting service
The global financial crisis in 2008 triggered a global movement to improve transparency and reduce counterparty risks in the over-the-counter (OTC) derivatives markets, resulting in reforms to the OTC derivatives markets on various fronts. The reform measures adopted by the international regulatory community include requiring all OTC derivatives transactions be reported to trade repositories (TRs) and all standardised OTC derivatives transactions be cleared at central counterparty (CCP) clearing facilities.
To meet international standards, the ΗΚΜΑ announced in December 2010 to establish a TR in Hong Kong, and that a link will be developed between the TR and the CCP for OTC derivatives to be launched by Hong Kong Exchanges and Clearing Ltd to allow eligible transactions to be passed to the CCP for central clearing.
The ΗΚΜΑ also worked in concert with the Government and the Securities and Futures Commission (“SFC”) to build a regulatory regime for the OTC derivatives markets under the Securities and Futures Ordinance (“SFO”), including requirements for mandatory reporting to the TR of the ΗΚΜΑ and mandatory clearing at designated CCPs.
In August 2013, the ΗΚΜΑ introduced interim reporting requirements to require Licensed Banks (“LBs”) to report OTC derivatives transactions with another LB to the TR of the ΗΚΜΑ. A set of Securities and Futures (OTC Derivative Transactions – Reporting and Record Keeping Obligations) Rules (the “Reporting Rules”) was introduced into the Legislative Council for negative vetting in June 2015, the effective date of the Reporting Rules is on 10 July 2015.
ΜΑΡ FinTech’s Polaris Reporting Hub is configurable to fully satisfy our client’s reporting obligations under ΗΚΜΑ.