Circular to Intermediaries and their Affiliated Corporations Engaging in Activities concerning Over-the-counter (“OTC”) Derivative Products or Transactions OTC Derivatives Activities Survey 2016

17 Jun 2016



Circular to Intermediaries and their Affiliated Corporations Engaging in Activities concerning Over-the-counter (“OTC”) Derivative Products or Transactions

OTC Derivatives Activities Survey 2016

  1. In order to facilitate a smooth transition from an unregulated OTC derivatives market in Hong Kong to one which is regulated, the Securities and Futures Commission ("SFC") conducts this survey to collect information in relation to activities concerning OTC derivative products or transactions1 engaged in by intermediaries2 and their affiliated corporations.

  2. This survey is to be completed by all intermediaries and their affiliated corporations.  The SFC particularly wishes to draw the survey to the attention of intermediaries and their affiliated corporations that are likely to be affected by the regulatory regime governing the OTC derivatives market in Hong Kong provided for under the Securities and Futures (Amendment) Ordinance 2014 (“SFAO”)3 (i.e. those currently engaging in or planning to engage in a business of providing automated trading services for, or managing portfolios of, OTC derivative products, dealing in or advising on OTC derivative products, and / or providing client clearing services for OTC derivative transactions (collectively referred to as “OTC derivatives activities”) in Hong Kong).  Respondents are requested to submit the survey on a group basis, i.e. all the responding corporations belonging to the same group of companies4 should consolidate their responses and submit one set of completed survey.

  3. If none of the corporations within your group of companies is currently conducting or planning to conduct OTC derivatives activities in Hong Kong, you only need to complete Part A of the survey.

  4. The survey can be downloaded from the SFC’s designated webpage at the link below.

    http://www.sfc.hk/web/files/IS/forms/OTCDerivativesActivitiesSurvey2016.xlsx

  5. Before filling in the survey, please read the scope and completion instructions set out in the survey.

  6. Please submit the completed survey to us on or before 15 July 2016 (Friday).  The submission instructions are set out on the first page of the survey.

  7. All information collected will be treated in strict confidence.  Should you have any enquiries regarding the above or the survey, please contact your case officer in the Intermediaries Supervision Department or Ms Perla Yau at 2231 2115 or email to otcdsurvey2016@sfc.hk.

Intermediaries Supervision Department
Intermediaries Division
Securities and Futures Commission

End

SFO/IS/017/2016

Note 1 Please refer to Schedule 1 to the Securities and Futures Ordinance (“SFO”) for the definition of “OTC derivative product” and “OTC derivative transaction”.
Note 2 “Intermediary” means a licensed corporation or a registered institution.
Note 3 The SFAO provides for the regulation of participants in the Hong Kong OTC derivatives market by the establishment of two new types of regulated activity under Schedule 5 of the SFO – Type 11 regulated activity (dealing in OTC derivative products or advising on OTC derivative products) and Type 12 regulated activity (providing client clearing services for OTC derivative transactions). In addition, the existing scope of Type 9 regulated activity (asset management) will be expanded to cover the management of a portfolio of OTC derivative products and the existing scope of Type 7 regulated activity (providing automated trading services) will be expanded to cover the provision of automated trading services for OTC derivative products.
Note 4 Please refer to Schedule 1 to the SFO for the definition of "group of companies".

Click here to download the document


Page last updated: 17 Jun 2016