On July 14, 2025, the Securities and Futures Commission ("SFC") published a public consultation on draft amendments to the Securities and Futures (Financial Resources) Rules ("FRR") and related guidelines to foster market developments for OTC derivatives and other products. Interested parties have until October 13, 2025, to submit comments.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On July 14, 2025, the Securities and Futures Commission ("SFC") issued a public consultation on draft amendments to the Securities and Futures (Financial Resources) Rules ("FRR") and related guidelines for the implementation of capital requirements for licensed corporations engaging in OTC derivative activities, along with other changes designed to enhance market development.
Stakeholders are invited to submit their written comments on the consultation by October 13, 2025, through the SFC’s website, email, postal service, or fax at 2523 4598. Detailed information can be found in the SFC’s press release, consultation conclusions, and consultation paper.
The consultation covers the draft Guidelines for Internal Models Approach for FRR Market Risk Charges Calculation and the draft General Principles for Model Risk Management, both of which are published for comment.
In 2015, the SFC consulted on a conceptual framework for capital requirements for licensed corporations engaging in OTC derivative activities. Following the consultation, the framework was deemed appropriate in 2017, and additional changes were proposed for further consultation.
For detailed information, please refer to the SFC’s Consultation Paper on Proposed Changes to the Securities and Futures (Financial Resources) Rules (17 July 2015) and the Consultation Conclusions and Further Consultation Paper (24 July 2017).
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