Under Hong Kong's Securities and Futures Ordinance (Cap. 571), the SFC makes the rules on reporting, clearing and record keeping, with the consent of the Hong Kong Monetary Authority (HKMA)1. It also designates central counterparties2 and the financial services providers that can be the counterparty to a clearing obligation3. The SFC grants the licenses that corporations receive under section 116 of the Securities and Futures Ordinance4.

The destination for reported trade information is the HKMA, not the SFC. How the two authorities divide their roles is covered in the article "OTC Derivatives Regulation in Hong Kong".

Notes

  1. The "Made by" statement after the title of the "Securities and Futures (OTC Derivative Transactions—Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules" (L.N. 28 of 2016) (page B527). It states that the SFC made the rules with the consent of the HKMA (the Monetary Authority), under sections 101N, 101P and 101Q of the Securities and Futures Ordinance. The reporting rules (L.N. 96 of 2015) have a statement in the same form, which states that the SFC made them with the consent of the HKMA under sections 101L and 101P (page B1453). ↩

  2. Rule 16(1) of the same rules (page B561). It provides that when the SFC considers it appropriate in the interests of investors or the public, it may designate a central counterparty under section 101J(1) of the Securities and Futures Ordinance. ↩

  3. Rule 3(1) of the same rules (page B531). It provides that the SFC may designate financial services providers by notice in the Gazette, with the consent of the HKMA. ↩

  4. Securities & Futures Commission of Hong Kong, "Types of intermediary and licensed individual" page, the description of "Licensed corporation". The grant of a license under section 116 of the Securities and Futures Ordinance. ↩