Consultation on annual update to Financial Services Providers list under OTC derivatives regulatory regime

On April 21, 2023, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) issued a joint consultation paper „on the annual update to the list of Financial Services Providers under the clearing obligation for over-the-counter derivative transactions“. Therein, the two government agencies seek comment on the inclusion of one additional entity (Santander US Capital Markets LLC) which meets the criteria of
(a) belonging to „a group of companies appearing on the list of global systemically important banks published by the Financial Stability Board, or on 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) of being „members of the largest central counterparties offering clearing for interest rate swaps in the US, Europe, Japan and Hong Kong“.
The regulators also propose to delete one entity from the list (Santander Investment Securities Inc.) and modify the name of another (J.P. Morgan SE (previously stated as “J.P. Morgan AG”).