EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Over-the-Counter (OTC) derivatives reporting
Under the statutory framework for regulating the OTC derivatives market outlined in Part IIIA of the Securities and Futures Ordinance, authorized institutions, licensed corporations and approved money brokers (collectively referred to as “Reporting Entities”) that hold significant positions in Hong Kong OTC derivatives transactions are required to report these to the Hong Kong Trade Repository (HKTR) on a T+2 basis and maintain those records.
The product scope for mandatory reporting encompasses five categories: (i) interest rate (IR) derivatives, (ii) foreign exchange (FX) derivatives, (iii) equity (EQ) derivatives, (iv) credit (CD) derivatives, and (v) commodity (CM) derivatives.
Hong Kong OTC derivatives trade repository requirements – latest updates:
The Hong Kong Monetary Authority and the Securities and Futures Commission have jointly issued a consultation conclusion paper in September 2024, detailing key enhancements to the OTC derivatives reporting regime. These enhancements, which will become mandatory starting from 29 September 2025, encompass:
- Implementation of Unique Transaction Identifiers (UTI)
- Implementation of Unique Product Identifiers (UPI)
- Reporting of Critical Data Elements (CDE)
- Adoption of the ISO 20022 standard
|
Milestone |
Date |
|
|---|---|---|
|
Issuance of joint consultation paper to further enhance the reporting framework |
22 March 2024 |
|
|
Issuance of joint consultation conclusion on the enhanced reporting framework |
26 September 2024 |
|
|
Issuance of first version of Supplementary Reporting Instructions and Frequently Asked Questions |
20 December 2024 |
|
|
Issuance of second version of Supplementary Reporting Instructions and Frequently Asked Questions |
25 April 2025 |
|
|
Launch of the testing environment |
2 June 2025 |
|
|
Optional early transition date for the enhanced reporting framework |
22 September 2025 |
|
|
Effective date of the enhanced reporting framework |
29 September 2025 |
|
|
Deadline for re-reporting live legacy trades |
29 March 2025 |
|
|
29 September 2026 |