The Hong Kong Securities and Futures Commission (SFC) has released its conclusions on the proposed changes to the position limit regime for the derivatives market, including imposing obligations on asset managers who manage funds or sub-funds of umbrella funds. The SFC will implement the proposed changes to provide more clarity on regulatory requirements, increase position limits for certain products, and provide more flexibility to the market. The law changes are expected to come into effect in December 2023. The proposed changes include expanding the list of “specified contracts,” prescribing position limits and reporting levels for new contracts, increasing the position limit for renminbi currency contracts, imposing large open position reporting requirements for holiday trading contracts, clarifying the circumstances under which a clearing participant is not considered to have discretion over its clients’ positions, and introducing an excess position limit regime for clearing participants.
Consultation Conclusions on proposed changes to the Securities and Futures (Contracts Limits and Reportable Positions) Rules and the Guidance Note on Position Limits and Large Open Position Reporting Requirements: https://apps.sfc.hk/edistributionWeb/api/consultation/conclusion?lang=EN&refNo=22CP5