According to the app, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have announced that they have completed their annual update to the list of financial service providers recognized under the over-the-counter (OTC) derivatives regulatory framework. .sfc.hk.
Annual review and updates
The annual update process is part of our ongoing efforts to ensure that the list of financial service providers is up-to-date and accurate. This list is essential to maintaining the integrity and supervision of Hong Kong’s OTC derivatives market, mitigating systemic risk and enhancing market transparency.
The importance of compliance
Financial institutions on this list must adhere to strict regulatory standards set by the SFC and HKMA. These standards include strong risk management practices, adequate capital reserves, and transparent reporting mechanisms. The updated list serves as an important reference for market participants to identify compliant counterparties for OTC derivatives transactions.
market implications
This list update is expected to have a significant impact on Hong Kong’s over-the-counter derivatives market. The SFC and HKMA aim to strengthen trust and stability in the market by ensuring that only compliant and financially sound institutions are recognized. Additionally, these updates align with international regulatory standards, further aligning Hong Kong’s financial markets with global best practices.
conclusion
The SFC and HKMA’s efforts to update the list of financial service providers under the OTC derivatives regulatory regime underscore their commitment to maintaining transparent and stable financial markets. Such updates are essential to safeguard the interests of market participants and ensure the overall soundness of the financial system.
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