Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
515.5995

Press Releases

Developing a Trade Repository for OTC Derivatives Trades in Hong Kong

The Hong Kong Monetary Authority (HKMA) announced today (Friday) the development of a local trade repository (TR) for over-the-counter (OTC) derivatives trades in Hong Kong.

Arising from the global financial crisis in 2008, concerted effort has been made by the international community to improve the transparency and reduce the counterparty risks in the OTC derivatives markets. Specifically the G20 has recommended that all standardised OTC derivatives contracts should be cleared through central counterparty clearing facilities (CCPs) and all OTC derivatives contracts should be reported to TRs by the end of 2012. As an international financial centre, Hong Kong will need to comply with these international standards.

The TR is a centralised registry that maintains an electronic database of records of OTC derivatives transactions. By providing OTC derivatives transactions information to regulatory authorities, the TR plays a vital role in supporting authorities in carrying out their market surveillance responsibilities, which will help maintain stability of the financial systems in Hong Kong. It also helps increase transparency in the market, promote standardisation and provides a level of consistency in the quality and availability of transaction data.

Scheduled for launch in 2012, the TR in Hong Kong will be provided as a new service under the Central Moneymarkets Unit of the HKMA. A link will be developed between the TR and the CCP for OTC derivatives to be launched by Hong Kong Exchanges and Clearing Ltd (HKEx) to allow eligible transactions to be passed to the CCP for central clearing. The HKMA will work in concert with the Government and the Securities and Futures Commission to build a regulatory regime for OTC derivatives markets. This would cover the reporting of OTC derivatives transactions, particularly those which are relevant to the Hong Kong market, to the TR and the clearing of standardised OTC derivatives transactions through an authorised CCP.

At the initial stage, the reporting and clearing requirement will be applied to interest rate swaps and non-deliverable forwards. Consideration will be given to extending the requirement to other appropriate OTC derivatives asset classes after the initial roll out, having regard to local and overseas market developments including any further guidance from international regulatory bodies. The industry will be consulted on the relevant supervisory requirements by the third quarter of 2011.

Mr Eddie Yue, Deputy Chief Executive of the HKMA, said, "The lack of market transparency and robust clearing and settlement infrastructure in OTC derivatives markets was highlighted as a source of instability in the recent financial crisis. The HKMA supports HKEx's initiative to develop the CCP for OTC derivatives and considers it both timely and necessary for Hong Kong to develop a local TR. The local TR and CCP are crucial for enhancing the robustness and transparency of local OTC derivatives markets, bringing Hong Kong's financial market infrastructure in line with global standards."

For media enquiries, please contact:
Rhonda Lam, Communications Chief, at 2878 1480 or
Yokee Wong, Manager (Communications), at 2878 1213

Hong Kong Monetary Authority
10 December 2010

Deputy Chief Executive of the Hong Kong Monetary Authority Eddie Yue (middle), Executive Director of the Securities and Futures Commission Keith Lui (third from right) and Chief Executive of Hong Kong Exchanges and Clearing Limited Charles Li (third from left) attend a briefing on the latest developments of the establishment of a trade repository and a central counterparty for over-the-counter derivatives transactions in Hong Kong.

Deputy Chief Executive of the Hong Kong Monetary Authority Eddie Yue (middle), Executive Director of the Securities and Futures Commission Keith Lui (third from right) and Chief Executive of Hong Kong Exchanges and Clearing Limited Charles Li (third from left) attend a briefing on the latest developments of the establishment of a trade repository and a central counterparty for over-the-counter derivatives transactions in Hong Kong.

Last revision date: 1 August 2011
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery