Circular to licensed corporations - SFC consultation on changes to financial resources rules and related guidelines to foster market developments for OTC derivatives and other products

The Securities and Futures Commission (SFC) today published a public consultation on the draft amendments to the Securities and Futures (Financial Resources) Rules (FRR) and related guidelines¹ for the implementation of the capital requirements for licensed corporations engaging in OTC derivative activities² as well as other changes to facilitate market development. The SFC also concludes on certain FRR changes which it consulted on in 2017³.

Interested parties are invited to submit their written comments on the consultation by 13 October 2025 via the SFC website (www.sfc.hk), by email to frr_consultation@sfc.hk, by post or by fax to 2523 4598.

Please refer to the SFC’s press release and the consultation conclusions and consultation paper for details.

Intermediaries Division
Securities and Futures Commission

End

SFO/IS/023/2025

¹ The draft Guidelines for Internal Models Approach for FRR Market Risk Charges Calculation and draft General Principles for Model Risk Management.
² In 2015, the SFC consulted on a conceptual framework of capital requirements for licensed corporations engaging in OTC derivative activities. In 2017, the SFC concluded that the framework was appropriate and made some proposed changes for further consultation. For details, please refer to the SFC’s Consultation Paper on Proposed Changes to the Securities and Futures (Financial Resources) Rules (17 July 2015) and the Consultation Conclusions and Further Consultation on Proposed Changes to the Securities and Futures (Financial Resources) Rules ( 24 July 2017) (2017 Consultation Conclusions and Further Consultation Paper).
³ For details, please refer to the 2017 Consultation Conclusions and Further Consultation Paper.