The SFC and HKMA issued a joint consultation on updating the Financial Services Providers ("FSP") list under the OTC derivatives regulatory regime, proposing to add one entity, with updates effective 1 January 2026. Comments are due by 16 May 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On April 17, 2025, the Securities and Futures Commission ("SFC") and the Hong Kong Monetary Authority ("HKMA") published a joint consultation paper regarding the annual update to the list of Financial Services Providers (FSP List) under the over-the-counter ("OTC") derivatives clearing regime.
Pursuant to the latest annual review, the regulators proposed adding one entity to the FSP list to maintain its relevance and appropriateness. This update, if adopted, will be effective from January 1, 2026.
The FSP concept has been incorporated into the clearing regime to identify major OTC derivatives dealers outside Hong Kong. Central clearing is mandatory for certain transactions involving major dealers outside Hong Kong (referred to as FSPs) and prescribed persons such as authorized institutions, approved money brokers, or licensed corporations.
Stakeholders are invited to submit comments to the SFC or HKMA by May 16, 2025. The consultation paper can be accessed from the respective websites of the SFC or HKMA.
The FSP List comprises entities meeting the following criteria: (a) They belong to a group of companies featured in the global systemically important banks list published by the Financial Stability Board or the list of dealer groups committed to working collaboratively with central counterparties, infrastructure providers, and global supervisors to enhance the global OTC derivatives markets; and (b) They are members of the largest central counterparties providing clearing services for interest rate swaps in the United States, Europe, Japan, and Hong Kong.
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