HKMA and SFC consult on annual update to Financial Services Providers list under OTC derivatives regulatory regime

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) today (17 April) issued a joint consultation on the annual update to the list of Financial Services Providers (FSP List) under the over-the-counter (OTC) derivatives clearing regime (Note).

Based on the latest annual review, the regulators proposed adding one entity to the FSP list to ensure the list remains relevant and appropriate. The update, if adopted, is scheduled to take effect on 1 January 2026.

The concept of FSP has been introduced to the clearing regime to identify major OTC derivatives dealers outside Hong Kong. Central clearing is required for certain transactions conducted between a major dealer outside Hong Kong (i.e., an FSP) and a prescribed person (i.e., an authorized institution, an approved money broker or a licensed corporation).

Interested parties are invited to submit comments to the HKMA or the SFC by 16 May 2025. The joint consultation paper can be downloaded from the websites of the HKMA or the SFC.

Note: The FSP List includes entities that meet the following two criteria: