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
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