Regulatory Framework for Sustainability-Linked Derivatives: Hong Kong Analysis

Interest in environmental, social and governance (ESG) issues has grown in Asia-Pacific, as companies transition to a green economy and enhance their social responsibility credentials. Sustainability-linked derivatives (SLDs) have emerged as one of the tools available to help firms meet their ESG objectives. However, it is necessary for users to understand how these instruments fit into existing regulatory regimes.

This whitepaper analyzes two categories of SLDs in the context of the derivatives regulatory framework in Hong Kong.

Specifically, it considers:

  • Whether SLDs would be classified as over-the-counter (OTC) derivatives transactions or another type of regulated product, and how they are regulated; and
  • Compliance issues for market participants to consider when executing SLDs.

Documents (1) for Regulatory Framework for Sustainability-Linked Derivatives: Hong Kong Analysis

ISDA AGM Studio: Jacques Vigner, BNP Paribas

Jacques Vigner, ISDA board member and chief strategic oversight officer for global markets at BNP Paribas, speaks with Mark Gheerbrant, global head of risk and capital at ISDA, on the key obstacles to a consistent, risk-appropriate capital framework and how to...

ISDA AGM Studio: Future Leaders in Derivatives

Following publication of the latest whitepaper from the ISDA Future Leaders in Derivatives (IFLD) program, Collateral and Liquidity Efficiency in the Derivatives Market: Navigating Risk in a Fragile Ecosystem, Joel Clark talks to IFLD participants Koen Ottenheijm, senior treasury and...