Circular in relation to the clearing and record keeping rules for the OTC derivatives regime – changes to the list of persons designated as financial services providers

The Securities and Futures Commission of Hong Kong (SFC) has issued a circular entitled Circular in relation to the clearing and record keeping rules for the OTC derivatives regime – changes to the list of persons designated as financial services providers to inform of the updated list of firms designated as financial service providers [FSPs] in Hong Kong. This list includes the name of institutions who are licensed to act as a counterparty to OTC derivatives. This latest revised list reflects one removal, namely Santander Investment Securities Inc., and one addition, namely Santander US Capital Markets LLC.
Also, with this circular the SFC wants to remind licensed intermediaries and corporations „that if their average total position in OTC derivatives during a Calculation Period reaches the corresponding Clearing Threshold [US$ 20 billion], relevant OTC derivative transactions they enter into on and after the corresponding prescribed day, including those with FSPs must be centrally cleared in accordance with the Clearing Rules.“ For further information, the Commission refers to its Frequently Asked Questions on the Implementation and Operation of the Mandatory Clearing Regime which are attached to this summary as well.