The SFC’s Circular on Clearing Amendment Rules has been gazetted and these amendments will come into effect on 1 July 2024, pending approval by the Legislative Council. The Clearing Amendment Rules specify conditions under which certain interest rate swap transactions referencing alternative reference rates will be subject to clearing obligations. Conversely, interest rate swap transactions referencing interbank offered rates that are no longer published or considered representative will no longer be subject to clearing obligations. Licensed Persons must ensure compliance with the Clearing Rules, which require centrally clearing relevant OTC derivative transactions if their average total position in OTC derivatives reaches the corresponding Clearing Threshold during a Calculation Period.
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