On January 29, 2026, the Securities and Futures Commission ("SFC") and the Hong Kong Monetary Authority ("HKMA") jointly proposed standardizing the calculation periods for OTC derivative transactions under the Clearing Rules. This change, effective from March 1, 2027, aims to enhance operational efficiency and compliance certainty for derivative dealers. Comments are invited by February 27, 2026.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On January 29, 2026, the Securities and Futures Commission ("SFC") and the Hong Kong Monetary Authority ("HKMA") jointly proposed a consultation to standardize the calculation periods for each year under the Clearing Rules for over-the-counter ("OTC") derivatives. This change will be effective as of March 1, 2027.
The current method necessitates periodic updates to the calculation periods as detailed in the Clearing Rules. The proposed change envisions the designation of two standard calculation periods annually: March 1 to May 31 and September 1 to November 30.
This initiative is designed to enhance the regulatory framework for OTC derivatives by providing greater certainty to derivative dealers in identifying future calculation periods for compliance.
The consultation period invites public comments until February 27, 2026. The consultation paper can be accessed from the SFC or HKMA websites.
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