On September 22, 2025, the Securities and Futures Commission ("SFC") announced a consultation on extending the investor identification regime to the exchange-traded derivatives market in Hong Kong. The new regime, similar to the current one for securities, will require licensed corporations and registered institutions to submit clients' names and identity information to a central data repository. The consultation period ends on December 22, 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SFC Regulation of Virtual Asset Trading Platforms: The Emerging Hong Kong Framework
SFC proposes new regulation of virtual assets through licensing of operators of cryptocurrency and other digital asset trading platforms
Market Misconduct Tribunal: A Guide to Penalties and Other Consequences for Misuse of Insider Information
Market Misconduct Tribunal proceedings for mishandling of insider information can result in fines and disgorgement orders
SPOTLIGHT ON
FAMILY OFFICES
On September 22, 2025, the Securities and Futures Commission ("SFC") initiated a consultation on the proposed investor identification regime for the exchange-traded derivatives market ("HKIDR-DM") in Hong Kong, aimed at fortifying market integrity and promoting sustainable growth.
The HKIDR-DM builds upon the success of the HKIDR-S regime for the securities market, which has been in effect since March 2023. This new regime will encompass on-exchange orders for futures contracts, options contracts, and stock options traded through the Hong Kong Futures Exchange Limited’s trading system.
Under the HKIDR-DM, financial entities offering brokerage services or conducting proprietary trading must submit clients' names and identity information to a centralized data repository, mirroring the approach of the HKIDR-S.
According to Mr. Rico Leung, SFC’s Executive Director of Supervision of Markets, the proposed regime is aligned with Hong Kong’s burgeoning derivatives market and international best practices. Its primary objectives are to uncover irregularities and safeguard investor interests, while mitigating the operational burden on the industry.
The consultation period is set to run for three months, commencing on September 22, 2025, and concluding on December 22, 2025. Feedback can be provided through the SFC website, email, or post.
The implementation of the proposed regime is anticipated in the first quarter of 2028. Compliance with the Personal Data (Privacy) Ordinance will be mandatory for involved entities, including obtaining clients' express consent before collecting and sharing any personal data.
View the full article:Source
