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 AGM Studio: Scott O'Malia and Chris Edmonds
Christopher Edmonds, president, fixed income & data services, at Intercontinental Exchange, speaks with Scott O’Malia, ISDA CEO, about how market volatility, regulatory change and technological transformation are reshaping global markets. The discussion explores what recent volatility has meant for participation,...
ISDA AGM Studio: Bill Borden, Microsoft
Bill Borden, corporate vice president, worldwide financial services, at Microsoft, speaks with Mark New, ISDA’s co-head of digital transformation and senior counsel, about how artificial intelligence (AI) is shaping the future of financial markets and the key factors firms should...
ISDA AGM Studio: Heath Tarbert
Heath Tarbert, president of Circle, speaks with ISDA CEO Scott O’Malia about the primary applications of stablecoins in derivatives markets and how key legal considerations – including bankruptcy treatment and settlement finality – are being addressed as digital assets become...
ISDA AGM Studio: Yuval Rooz
Yuval Rooz, co-founder and CEO of Digital Asset, speaks with ISDA CEO Scott O’Malia about the growing momentum behind tokenization, the most compelling use cases for derivatives markets and the remaining hurdles that need to be addressed to enable widespread...