The Securities & Futures (Amendment) Ordinance 2014 was gazetted today to provide a regulatory framework for Hong Kong’s over-the-counter derivatives market.
The framework, which is in line with those in other international financial centres, will meet Group of Twenty commitments, the Financial Services & the Treasury Bureau said.
Under the new regulations, Hong Kong's financial regulators will be empowered to introduce mandatory reporting, clearing and trading, and record-keeping obligations.
It will cover key players in the over-the-counter derivatives market, including authorised financial institutions, approved money brokers, licensed corporations and others.
Other amendments to be incorporated include empowering the criminal courts to make restraint, charging and confiscation orders over the proceeds of market misconduct offences.
This will bring Hong Kong's regime in closer alignment with the Financial Action Task Force on Money Laundering’s recommendations.
The amendment will take effect on a date to be appointed by the Secretary for Financial Services & the Treasury, by notice published in the Gazette.
Subsidiary legislation will be tabled in the Legislative Council starting at the end of the year.
