The Securities and Futures Commission gazettes a revised list of financial services providers ("FSPs") for the OTC derivatives regime. Effective January 1, 2026, the list replaces the existing one. Licensed persons must ensure that their average total position in OTC derivatives reaches the clearing threshold of USD 20 billion during a three-month calculation period to have their derivative transactions centrally cleared.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On December 12, 2025, the Securities and Futures Commission ("SFC") gazetted a revised list of persons designated as financial services providers ("FSPs") for the purposes of the Securities and Futures (OTC Derivative Transactions—Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules (Clearing Rules), effective as of January 1, 2026.
Licensed persons are reminded that if their average total position in OTC derivatives during any three-month Calculation Period reaches USD 20 billion, all relevant OTC derivative transactions entered into on or after the corresponding Prescribed Day, including those with FSPs, must be centrally cleared in accordance with the Clearing Rules.
The Clearing Threshold is set at USD 20 billion per Calculation Period, and the Prescribed Day is seven months after the end of its respective Calculation Period.
For further clarification and detailed information, please refer to the Clearing Rules and the Frequently Asked Questions on the Implementation and Operation of the Mandatory Clearing Regime. The Clearing Rules are accessible at the provided link, while the Frequently Asked Questions can be accessed at another designated link.
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