Joint consultation on changes to the OTC derivative Clearing Rules

The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have launched a joint consultation on proposed changes to the Clearing Rules for over-the-counter (OTC) derivatives, which would subject new types of transactions to clearing obligations. The proposed changes align with global interest rate benchmark reform, which aims to transition from interbank-offered rates (IBORs) to alternative reference rates (ARRs). The proposed changes require certain OTC transactions referencing relevant ARRs to be cleared instead of IBORs that are no longer published or considered representative. Interested parties can submit comments to the HKMA or SFC before April 11, 2023, and the joint consultation paper is available on their websites.



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