On February 27, ISDA responded to a joint consultation by the Hong Kong Monetary Authority (HKMA) and the Securities Futures Commission (SFC) on proposed amendments to schedule 2 of the clearing rules for over-the-counter (OTC) derivatives. The proposed amendments introduce permanent calculation periods going forward – ie, every March 1 to May 31 and September 1 to November 30 each year, with effect from March 1, 2027.
ISDA welcomes the amendment, which provides greater regulatory certainty and removes the need for periodic legislative amendments to update the calculation periods. ISDA also notes that having a permanent way of determining the calculation periods is in line with practices in Europe and the UK.
In addition, ISDA suggests regulators should consider broadening the exemptive relief for clearing, which is limited to transactions resulting from multilateral portfolio compression exercises, to include those resulting from post-trade risk reduction exercises in a future review, like other jurisdictions, such as Australia, Europe and the UK.
Documents (1) for ISDA Response to HKMA SFC Consultation on Clearing Rules
Latest
ISDA, GDF Respond to the Central Bank of Ireland on DLT and Tokenization
On June 3, ISDA and Global Digital Finance responded to the Central Bank of Ireland’s discussion paper on distributed ledger technology (DLT) and tokenization in financial services. The response focuses on the potential role of DLT and tokenization within wholesale...
Response to Consultation on Dividend Stripping
On May 28, ISDA and the Association for Financial Markets in Europe (AFME) responded to the Dutch Ministry of Finance’s consultation on additional anti-dividend stripping measures, urging that the proposed rules should target only abusive arrangements and not ordinary, commercially...
Episode 58: The AGM Agenda
This year’s ISDA Annual General Meeting featured discussions on the growth of digital assets and tokenized collateral, how AI is being used in financial services and changes to the regulatory framework. The Swap looks back at the conversations. Please view...
Market Transformation – IQ May 2026
On the 250th anniversary of American independence, this year’s ISDA Annual General Meeting (AGM) was held in Boston, a city that played a prominent role in the American Revolution. In his opening remarks, ISDA chief executive Scott O’Malia drew a...