The Hong Kong Monetary Authority and the Securities and Futures Commission issued a consultation on the annual update of the list of financial service providers.

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) today (17th April) issued a joint consultation paper on the annual update of the list of financial services providers under the off-exchange derivative clearing system. Based on the latest annual review, the regulatory authorities propose to add one institution to the list of financial services providers to ensure that the list remains relevant and appropriate. If the update is accepted, it is scheduled to take effect on 1st January 2026. The HKMA introduced the concept of financial services providers in the clearing system to identify primary off-exchange derivative traders outside Hong Kong. Certain transactions between primary traders (i.e. financial services providers) outside Hong Kong and specified persons (i.e. recognised institutions, approved money brokers or licensed corporations) require central clearing. Note: Institutions on the financial services provider list must meet the following two criteria: (a) Belong to a group listed in the Global Systemically Important Banks list published by the Financial Stability Board, or belong to a group listed in the Trader Group list, with the latter having committed to cooperating with central counterparties, infrastructure providers, and global supervisors to continue improving the structure of the global off-exchange derivative market; (b) Are members of the largest central counterparties providing clearing services for interest rate swaps in the United States, Europe, Japan, and Hong Kong.