The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority issued a joint consultation summary, proposing to revise the "Securities and Futures (Over-the-Counter Derivatives Transactions—Settlement and Record-keeping Responsibilities and Designation of Central Counterparty) Rules," to standardize the calculation period for mandatory settlement responsibilities of over-the-counter derivatives. According to the proposal, starting from March 1, 2027, two fixed calculation periods will be adopted annually (March 1 to May 31, and September 1 to November 30), to simplify the current practice of periodically revising the list of calculation periods and improve market participants' planning and compliance efficiency.

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BribeCoffee
· 4h ago
It won't take effect until March 2027, leaving the market a two-year buffer period, which is still quite pragmatic.
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FomoAfterYoga
· 14h ago
Hong Kong's move to follow international clearing standards will make the OTC derivatives market more transparent, benefiting the long-term ecosystem.
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GotLiquidatedAgainLastNight.
· 14h ago
Simplify the checklist revision process, reduce compliance costs, and small organizations can also catch a breath.
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FeeFiFoFum
· 14h ago
Standardizing forced settlement is a good thing, but will two fixed windows cause institutions to cluster and rebalance their portfolios?
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