Consultation paper on the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping) Rules
|
|
- Hugh Palmer
- 5 years ago
- Views:
Transcription
1 31 July 2014 Consultation paper on the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping) Rules Contents On 18 July 2014, the Securities and Futures Commission ( SFC ) and the Hong Kong Monetary Authority ( HKMA ) jointly released the Consultation paper on the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping) Rules (the Draft Rules ) (the Consultation Paper ). This follows on from the enactment of the Securities and Futures (Amendment) Ordinance (the Amendment Ordinance ) on 26 March 2014, which brings into effect a new regime for OTC derivative transactions, including mandatory reporting, mandatory clearing and new licensing obligations. It is anticipated that the Amendment Ordinance will be brought into effect in phases, with the mandatory reporting and record keeping obligations to come into effect in the first phase. This follows from the earlier Consultation Paper and Consultation Conclusions in October 2011 and July 2012 respectively. Reporting obligation The Amendment Ordinance provides that certain types of OTC derivative transaction will be subject to mandatory reporting, that is, they will have to be reported by counterparties to the trade repository set up by the HKMA (the HKTR ). The Draft Rules provide more detail as to which types of OTC derivative transaction are reportable and as to other details of the reporting obligation. What types of transactions are reportable? The Draft Rules propose that reportable transactions be specified by their product class and product types. Reporting obligation... 1 What types of transactions are reportable?... 1 Who is subject to the mandatory reporting obligation?... 2 How will the mandatory obligation apply?... 2 What are the available exemptions?... 4 Threshold levels for Hong Kong persons... 5 What information needs to be reported to HKTR? 5 When does a transaction have to be reported?... 5 Backloading... 6 Masking... 6 Record Keeping... 7 Next steps... 7 Reportable transactions are initially proposed to be: Product class Interest rate swaps (IRS) Product type Plain vanilla IRS (floating vs. fixed) Plain vanilla basis swap (floating vs. floating) In each case, such IRS are to be in currencies and floating rate indices to be specified by the HKMA. The intention is to specify currencies and floating rate indices on the International Organisation for Reporting and Record Keeping) Rules 1
2 Standardization (ISO) 4217 currency list and FpML Coding Schemes respectively, and which are supported by HKTR Non-deliverable forwards (NDF) Other types of OTC derivative transaction NDFs in currencies (including some precious metals) to be specified by the HKMA. The intention is to specify currencies and precious metals on the ISO 4217 currency list, and which are supported by HKTR Other types of IRS and NDF, and other OTC derivative transactions will be added in stages The Consultation Paper consults the market as to whether it has comments or concerns about the proposed types of IRS or NDFs to be subject to the mandatory obligation and how they are proposed to be defined. Who is subject to the mandatory reporting obligation? The Amendment Ordinance already provides that the reporting obligation will apply to authorized institutions ( AIs ), authorized money brokers ( AMBs ) and licensed corporations ( LCs ) as well as any persons prescribed in draft regulations. The Draft Rules provide that the reporting obligation will also be extended to the following counterparties: recognised clearing houses in Hong Kong ( RCHs ) or foreign central clearing counterparties that are licensed to provide automated trading services under the SFO ( ATS-CCPs ). The reporting obligation will only apply when the RCH or ATS-CCP enters into a reportable transaction in its capacity as a central counterparty (CCP). Hong Kong persons. This is a new definition introduced by the Draft Rules and will be defined as: Individuals resident in Hong Kong A partner of a partnership established under Hong Kong law A trustee of a trust established under Hong Kong law A company incorporated in Hong Kong under the Companies Ordinance (Cap. 622) (the Companies Ordinance ) Overseas companies registered or requiring to be registered under Part 16 of the Companies Ordinance Any other entity established under Hong Kong law How will the mandatory obligation apply? Like under the European Market Infrastructure Regulation (EMIR), Hong Kong employs a two-sided reporting system, such that each of the entities below must report if a mandatory reporting obligation applies and if there is no available exception. Reporting and Record Keeping) Rules 2
3 LCs or AIs incorporated in Hong Kong An LC or AI incorporated in Hong Kong is proposed to be subject to the mandatory reporting obligation if it (i) is a counterparty to a reportable transaction or (ii) has conducted (see discussion below) the transaction in Hong Kong on behalf of a counterparty to the transaction that is an affiliate of the LC or AI. An LC or AI that is a fund manager licensed for Type 9 regulated activity is proposed to be subject to the mandatory reporting obligation if it manages a portfolio of assets for another person and in the course of managing the portfolio, enters into a reportable transaction on behalf of the other person (who is a counterparty to the transaction). AI incorporated outside Hong Kong AMBs RCHs and ATS-CCPs Hong Kong persons Funds As for AIs incorporated in Hong Kong. Also, if the AI is a counterparty to a reportable transaction and the transaction is booked in the head office or in a branch outside Hong Kong but one of the persons who made the decision to enter into the transaction (i) acted in his/her capacity as trader and (ii) was employed to perform a substantial part of his/her duties in Hong Kong. An AMB is proposed to be subject to the mandatory reporting obligation if (i) it is a counterparty to the transaction or (ii) has conducted the transaction in Hong Kong on behalf of an affiliate that is a counterparty to the transaction. An RCH will be required to report all reportable transactions that it enters into as part of the clearing process. In contrast, an ATS-CCP will only need to report all reportable transactions that it enters into as part of the clearing process where the counterparty is a Hong Kong company. A Hong Kong person is proposed to be subject to the mandatory reporting obligation only for transactions to which they are a counterparty and if its transactions in a particular product class exceed the specific reporting threshold and continue to be above the relevant specified exit threshold. Funds will potentially be subject to the mandatory reporting obligation in two ways: (i) a fund may be a Hong Kong person if it is incorporated or established under Hong Kong law; and (ii) if the fund has a manager or submanager which is a Type 9 licenced AI or LC, that manager will have to report reportable transactions it enters into in the course of managing the portfolio on behalf of the other fund (which is a counterparty to the transaction). Reporting and Record Keeping) Rules 3
4 Conducted in Hong Kong In the earlier Consultation Paper, regulators proposed that trades that had a nexus to Hong Kong be subject to mandatory reporting. The original requirement, namely that the trade had to be originated and executed in Hong Kong, has been refined after extensive consultation with the industry and to align with similar requirements in Singapore and Australia. The requirement is now that the transaction be entered into on the books of an affiliate and that it be entered into by a trader who was employed or engaged to perform a substantial part of his or her duties in Hong Kong. The word trader is not defined and carries its natural meaning, but the intention is to capture the person who makes the trading decision, as opposed to a salesperson. Such a trader must be employed or engaged to perform a substantial part of his/her duties in Hong Kong. The intention is to exclude traders who are predominantly based outside Hong Kong but who are in Hong Kong for a short period. Conversely, trades entered into by a Hong Kong trader who is outside Hong Kong temporarily will be reportable. The terms employed and engaged are not defined and carry their natural meaning. Market participants will want to assess whether the definition is sufficiently clear and whether they wish to ask regulators to refine the definitions further, possibly by way of guidance notes or FAQs. What are the available exemptions? Exceptions that apply to Hong Kong persons: A Hong Kong person will not have to report a transaction where an AI, AMB or LC is required to report such a transaction. In the case where a Hong Kong person is a partner of a partnership, such person is not required to report a transaction if another partner of the partnership has reported the transaction. Exceptions that apply to AIs, AMBs or LCs: an AI, AMB or LC will be taken to have complied with the reporting obligation if it entered into a transaction on behalf of an affiliate in Hong Kong and the affiliate has confirmed that it has reported the transaction. Further, an AI, AMB or LC will be exempted from reporting obligation if the outstanding OTC derivative transactions of such AI, AMB or LC in the relevant product class do not: (i) (ii) (iii) exceed five in total; have an aggregate gross notional value of greater than US$30 million; and have Hong Kong persons as a counterparty. Reporting and Record Keeping) Rules 4
5 It is important to note that AIs, AMBs or LCs that have already set up a connection with the HKTR for reporting transactions in a certain product class will not be able to enjoy the exceptions. Threshold levels for Hong Kong persons Further, and only for Hong Kong persons, regulators have set reporting thresholds with the intention of lessening the compliance burden. Such thresholds are to be assessed by reference to the average gross notional value of a person s outstanding positions for the previous six months, based on his month-end position. The proposed reporting and exit thresholds are US$3 billion and US$2.1 billion, respectively, for IRS and US$1 billion and US$0.7 billion, respectively, for NDF. The lower exit thresholds are to ensure that persons whose positions fluctuate around the level of the reporting threshold are not constantly alternating between falling within and outside of the reporting threshold. If the thresholds are set at these levels, the SFC and the HKMA estimate that over 95% of Hong Kong persons who hold positions in IRS and NDF will not be subject to mandatory reporting obligation. It is anticipated that the threshold levels will be lowered in the future, however, this is not expected to happen before What information needs to be reported to HKTR? If the reporting obligation applies, parties are to submit the information in Schedule 2 of the Draft Rules to HKTR. This includes details as to the counterparties to the transaction; whether the transaction will be cleared; and all subsequent transaction events. Subsequent transaction events include events that affect the product, the terms and conditions on which the transaction was entered into or the persons involved in entering into the transaction. There is also a new requirement to submit daily valuation of transactions to HKTR, which is in the process of building its capability to accept such information. It is worth noting that this requirement applies to all counterparties, unlike under EMIR, where the requirement to provide valuation and collateral data to trade repositories will only apply to financial counterparties and certain non-financial counterparties (NFC+s). It remains to be seen whether this requirement is practical for non-financial counterparties who may not be able to access valuation information for transactions. When does a transaction have to be reported? Under the Draft Rules, it is proposed that reporting obligations must be fulfilled on a T+2 basis. However, when a new product type becomes reportable, a period of up to 3 months (known as a concession period) will apply to allow reporting entities to set up their operational systems required to report such transaction while a period of up to 6 months (known as a grace period) will apply for the reporting entities to complete backloading described below. Reporting and Record Keeping) Rules 5
6 The exact lengths of the grace periods and concession periods will depend on whether the reporting entity is an AI, AMB, LC, RCH or ATS-CCP or a Hong Kong person. Reporting to HKTR and use of reporting agents Reporting can only be made to the HKTR. However, regulators anticipate that entities subject to mandatory reporting will be able to fulfil their reporting obligations by appointing a third party reporting agent to report on their behalf. The concern by market participants has been that they should only be responsible for breaches resulting from their own actions and not those of their agents. Regulators have declined to provide specific protection, saying that the existing regulatory regime provides sufficient flexibility for specific circumstances. In Europe, the initial expectation was that buy-side counterparties subject to the reporting obligation would seek to delegate the reporting function to their financial institution counterparties as their agent. The experience of some market participants in this respect has been that the financial institutions willing to accept this reporting function typically limit their liability for the accuracy of information provided and so in practice the information provided by the delegating counterparty needs to be very thoroughly checked. In reality, there may therefore be little gained from delegating reporting for some market participants, in which case they may consider establishing direct connectivity to the HKTR. Backloading The requirements for backloading apply to AIs, AMBs or LCs and Hong Kong persons. However, in the case of an AI, AMB or LC, backloading will only apply to transactions to which it is a counterparty and not those that are conducted in Hong Kong. For AIs incorporated outside Hong Kong, backloading will apply only if the transactions are also booked in the Hong Kong branch of the AI. In the case of a Hong Kong person who is a non-hong Kong company, only transactions entered into before such person has exceeded the reporting threshold but after the date on which such transactions became reportable will need to be backloaded. Backloading must be completed within six months for a Hong Kong person and within three to six months for other entities that are subject to the reporting obligation. Transactions which are terminated or have a maturity before the relevant backloading deadline will not need to be backloaded. Masking The Draft Rules provide that a reporting entity may mask information which will identify certain counterparties if (i) the disclosure of such information is prohibited by the laws of, or a regulatory authority in, an overseas jurisdiction (which is designated by the regulators) or (ii) in the case of historical information (i.e. transactions that have been entered into before the Draft Reporting and Record Keeping) Rules 6
7 Rules first take effect), the reporting entity cannot disclose such information without the consent of the counterparty and, despite using reasonable efforts, the reporting entity was unable to obtain the required consent. Record Keeping The Draft Rules propose a new mandatory record keeping obligation, aimed at ensuring that persons subject to the mandatory reporting obligation keep adequate records to demonstrate compliance with the reporting obligation. In the 9 months following the transaction, such records must be kept in any form or manner as long as they are readily searchable and transactions can be identified and thereafter, records may be maintained in electronic form or paper form. Records should be kept for no less than 7 years. Next steps Comments on the Consultation Paper are due before 18 August The aim is to finalise the Draft Rules and issue consultation conclusions in Q4 of 2014 and to introduce the final rules into the Legislative Council in that quarter. No commencement date has yet been announced. It is worth noting that HKTR has been in operation since July 2013 for voluntary reporting of interbank transactions. HKTR is in the process of extending its capability for other types of OTC derivative transaction and to include fields that would allow parties to report more types of information, for example as to valuation. Because voluntary reporting to HKTR is already underway, it is hoped that the start of mandatory reporting will come into effect smoothly and without the system hiccups that beset the start of mandatory trade reporting under EMIR in February Reporting and Record Keeping) Rules 7
8 Contacts For further information please contact: Chin-Chong Liew Partner (+852) Victor Wan Partner (+852) Umesh Kumar Partner (+852) I-Ping Soong Counsel (+852) Karen Lam Counsel (+852) Kevin Marr Counsel (+852) This publication is intended merely to highlight issues and not to be comprehensive, nor to provide legal advice. Should you have any questions on issues reported here or on other areas of law, please contact one of your regular contacts, or contact the editors. Linklaters. All Rights reserved 2014 Linklaters Hong Kong is a law firm affiliated with Linklaters LLP, a limited liability partnership registered in England and Wales with registered number OC It is a law firm authorised and regulated by the Solicitors Regulation Authority. The term partner in relation to Linklaters LLP is used to refer to a member of the LLP or an employee or consultant of Linklaters LLP or any of its affiliated firms or entities with equivalent standing and qualifications. A list of the names of the members of Linklaters LLP and of the non-members who are designated as partners and their professional qualifications is open to inspection at its registered office, One Silk Street, London EC2Y 8HQ, England or on Please refer to for important information on our regulatory position. We currently hold your contact details, which we use to send you newsletters such as this and for other marketing and business communications. We use your contact details for our own internal purposes only. This information is available to our offices worldwide and to those of our associated firms. If any of your details are incorrect or have recently changed, or if you no longer wish to receive this newsletter or other marketing communications, please let us know by ing us at marketing.database@linklaters.com. Derek Chua Managing Associate (+852) derek.chua@linklaters.com or any of your usual contacts 10th Floor, Alexandra House Chater Road Hong Kong Telephone (+852) Facsimile (+852) / (+852) Reporting and Record Keeping) Rules 8 /
Hong Kong regulators publish proposed rules for mandatory clearing and expanded mandatory reporting
October 2015 Hong Kong regulators publish proposed rules for mandatory clearing and expanded mandatory reporting On 30 September, the HKMA and SFC published their proposed next steps in the regulation
More informationSFC consults on enhancements to the OTC derivatives regime in Hong Kong: mandatory reporting, clearing and trading obligations
April 2018 SFC consults on enhancements to the OTC derivatives regime in Hong Kong: mandatory reporting, clearing and trading obligations On 27 March 2017, the Securities and Futures Commission ( SFC )
More informationFinancial Institutions (Resolution) Ordinance the derivatives angle
July 2016 Financial Institutions (Resolution) Ordinance the derivatives angle Introduction Following two rounds of public consultation on proposals to establish a resolution regime for financial institutions
More informationConsultation on proposed regulatory regime for OTC derivatives market.
October 2011 Consultation on proposed regulatory regime for OTC derivatives market. On 17 October 2011, the Hong Kong Monetary Authority ("HKMA") and the Securities and Futures Commission ("SFC") jointly
More informationOTC Derivatives: Proposed Hong Kong Reporting & Record Keeping Requirements
OTC Derivatives: Proposed Hong Kong Reporting & Record Keeping Requirements Amendments in 2014 to the Securities and Futures Ordinance introduced a new statutory regime for OTC derivative transactions.
More informationSFC Consults on Structured Products Marketing Regime
5 November 2009 SFC Consults on Structured Products Marketing Regime Introduction As part of the ongoing reforms anticipated in the Consultation Paper on Proposals to Enhance Protection for the Investing
More informationShanghai Clearing House Launches Client Clearing Service
August 2014 Shanghai Clearing House Launches Client Clearing Service On 1 July 2014, China introduced mandatory central clearing for standard Renminbi interest rate swaps ( RMB IRS ) concluded on the interbank
More informationNear Final Hong Kong Rules on Margin and Risk Mitigation Standards for Non-Centrally Cleared OTC Derivatives
December 2016 Near Final Hong Kong Rules on Margin and Risk Mitigation Standards for Non-Centrally Cleared OTC Derivatives Contents Introduction On 6 December 2016, the Hong Kong Monetary Authority (the
More informationStock Connect: The Beneficial Ownership Conundrum
March 2015 Stock Connect: The Beneficial Ownership Conundrum It is amazing not how big China has become but how little it is understood. This aphorism that greets visitors on a billboard as they pass through
More informationSFC consults on refinements to the OTC derivatives regime and conduct requirements for licensed corporations
January 2018 SFC consults on refinements to the OTC derivatives regime and conduct requirements for licensed corporations On 20 December 2017, the Securities and Futures Commission ( SFC ) launched a two-month
More informationMandatory Clearing in Singapore Noteworthy next step
July 2015 Mandatory Clearing in Singapore Noteworthy next step Introduction On 1 July 2015, the Monetary Authority of Singapore ( MAS ) issued a consultation paper entitled Draft Regulations for Mandatory
More informationNew Investor ID Regime for China Connect how big is the impact?
8 December 2017 New Investor ID Regime for China Connect how big is the impact? Contents Introduction Earlier in the year, there has been speculation that some form of investor ID system will be implemented
More informationBond Connect - Frequently Asked Questions for the Buy Side Investors
1 September 2017 Bond Connect - Frequently Asked Questions for the Buy Side Investors What is Bond Connect? Bond Connect is a new mutual market access scheme that is established to allow Mainland China
More informationFrequently Asked Questions on. the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules.
Frequently Asked Questions on the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules 6 October 2017 These FAQs elaborate on how the Securities and Futures
More informationShanghai International Energy Exchange: Direct Trading Access for Overseas Participants
September 2017 Shanghai International Energy Exchange: Direct Trading Access for Overseas Participants Introduction After nearly two years of preparation, the Shanghai International Energy Exchange Corporation
More informationRelaxation of PRC regulatory restrictions on cross-border security and guarantees
May 2014 Relaxation of PRC regulatory restrictions on cross-border security and guarantees 1 Introduction After much anticipation 1, SAFE has finally published the Regulation on Foreign Exchange Administration
More informationReform proposed by PRC SAFE
March 2014 Reform proposed by PRC SAFE Relaxation of PRC regulatory restrictions on cross-border security and guarantees 1 Introduction SAFE is considering making sweeping changes to the regulatory regime
More informationReform of the Trustee Ordinance Consultation Conclusions.
November 2012 Reform of the Trustee Ordinance Consultation Conclusions. The Financial Services and the Treasury Bureau (the FSTB ) published the conclusions (the Conclusions ) to the Consultation on Detailed
More informationHKMA consults on amendments to the Guideline on Authorization of Virtual Banks - what do you need to know about setting up a virtual bank?
February 2018 HKMA consults on amendments to the Guideline on Authorization of Virtual Banks - what do you need to know about setting up a virtual bank? On 6 February 2018, the Hong Kong Monetary Authority
More informationNegative interest determined not to be payable under an ISDA Credit Support Annex
August 2018 Negative interest determined not to be payable under an ISDA Credit Support Annex On 25 July 2018, the English High Court handed down its judgment in The State of the Netherlands v Deutsche
More informationBond Connect another major milestone in mutual market access
3 July 2017 Bond Connect another major milestone in mutual market access Introduction The Bond Connect programme launched today 1 marked yet another major milestone in mutual market access between Mainland
More informationThe Hong Kong OTC derivatives regime consultation conclusions and supplemental consultation.
July 2012 The Hong Kong OTC derivatives regime consultation conclusions and supplemental consultation. Contents On 11 July 2012, the Hong Kong Monetary Authority ("HKMA") and the Securities and Futures
More informationESMA publishes Part II Technical Advice on Retail Cascades and certain provisions of the Prospectus Regulation
March 2012 ESMA publishes Part II Technical Advice on Retail Cascades and certain provisions of the Prospectus Regulation Overview On 20 January 2011, the European Commission mandated the European Securities
More informationFATCA IRS Proposes Extending Certain Deadlines and Grandfathering Provisions.
November 2012 FATCA IRS Proposes Extending Certain Deadlines and Grandfathering Provisions. The US Internal Revenue Service released Announcement 2012-42 (the Announcement ) on October 24, 2012 containing
More information1 Introduction. 2 Creditor Set-off as a Self-Help Remedy. October Contents. 1 Introduction 1
October 2013 A Step Closer to the Recognition of Close-out Netting in China? -- Judicial Interpretation of the PRC Enterprise Bankruptcy Law by the Supreme People s Court 1 Introduction For as long as
More informationDC Governance: Chair s statement
DC Governance: Chair s statement February 2016 1 DC Governance: Chair s statement New governance standards apply to trustees of most occupational pension schemes which provide defined contribution benefits
More informationSection 2(a)(iii) of the ISDA Master Agreement: does it suspend or extinguish obligations?
Section 2(a)(iii) of the ISDA Master Agreement: does it suspend or extinguish obligations? 9 December 2009 Marine Trade SA v Pioneer Freight Futures Co Ltd BVI [2009] EWHC 2656 (Comm) The High Court has
More informationChina Banking Regulatory Commission s Reply to Questions on Close-Out Netting.
August 2017 China Banking Regulatory Commission s Reply to Questions on Close-Out Netting. Contents Introduction With the global implementation of variation margin (VM) for non-centrally cleared derivatives,
More informationEMIR Update - ESMA Publishes Finalised Technical Standards
October 2012 EMIR Update - ESMA Publishes Finalised Technical Standards Introduction The European Securities and Markets Authority ( ESMA ) published on 27 September its technical standards and final report
More informationSupplementary Reporting Instructions for OTC Derivative Transactions. Table of Contents
Supplementary Reporting Instructions for OTC Derivative Transactions Style Definition: Footnote Reference Table of Contents Introduction -... 2 Section A - Abbreviations and glossary... 2 Section B - General
More informationJoint consultation conclusions on the proposed regulatory regime for the over-the-counter derivatives market in Hong Kong.
Joint consultation conclusions on the proposed regulatory regime for the over-the-counter derivatives market in Hong Kong July 2012 Table of contents Table of contents Glossary i v I. Introduction 1 II.
More informationFinal text of European Market Infrastructure Regulation released.
March 2012 Final text of European Market Infrastructure Regulation released. Final text of European Market Infrastructure Regulation released On 29 March 2012, the European Parliament (the Parliament )
More informationThe Market Abuse Regulation in Belgium
April 2016 The Market Abuse Regulation in Belgium Will you be ready? The new Market Abuse Regulation ( MAR ) will apply as from 3 July 2016. It will replace the existing Market Abuse Directive and the
More informationRegulating Intermediaries in the OTC Derivatives Market
Regulating Intermediaries in the OTC Derivatives Market Introduction The 2008 financial crisis showed the need to regulate the over-the-counter ( OTC ) derivative market. The Hong Kong Monetary Authority
More informationDraft Frequently Asked Questions (Draft FAQs) and Draft Supplementary Reporting Instructions (Draft SRIs) Comments
Polly Lee Senior Manager, Market Development Division Monetary Management Department Hong Kong Monetary Authority 55/F Two International Finance Centre 8 Finance Street Central Hong Kong Email: pyklee@hkma.gov.hk
More informationTeam Moves: The High Court Decides!
March 2012 Team Moves: The High Court Decides! A recent first instance decision of the High Court of Hong Kong has commented on a number of important issues relating to team moves, and in particular team
More informationProjected Compliance Timelines for the CFTC s Trading Documentation Rules and Uncleared Swap Margin Rules
September 20, 2011 Projected Compliance Timelines for the CFTC s Trading Documentation Rules and Uncleared Swap Margin Rules Contents On September 8, 2011, the Commodity Futures Trading Commission (the
More informationImplementation of the PD Amending Directive in Luxembourg.
July 2012 Implementation of the PD Amending Directive in Luxembourg. The aim hereof is to provide you with a short overview of the main changes and new requirements that will be relevant for issuers making
More informationCorporate Social Responsibility under the New Companies Act.
April 2014 Corporate Social Responsibility under the New Companies Act. 1 Introduction The recently enacted Companies Act, 2013 seeks to encourage large companies to invest in developmental activities
More informationIRS Provides Further Guidance for Foreign Accounts Reporting.
April 2011 IRS Provides Further Guidance for Foreign Accounts Reporting. On April 8, 2011, the U.S. Internal Revenue Service ( IRS ) released Notice 2011-34 (the Notice ), which contains a second round
More informationChina Launches Credit Derivatives Market.
8 November 2010 China Launches Credit Derivatives Market. Introduction After months of anticipation, the National Association of Financial Market Institutional Investors ( NAFMII ) published the Guidelines
More informationThe 2009 China Inter-bank Market Financial Derivative Transactions Master Agreement
Hot topic. March 2009 The 2009 China Inter-bank Market Financial Derivative Transactions Master Agreement 1. Background On 16 March 2009, the National Association of Financial Market Institutional Investors
More informationU.S. Securities Law Briefing. SEC Raises Exchange Act Registration, Termination and Suspension Thresholds to Conform with JOBS Act and FAST Act
May 2016 U.S. Securities Law Briefing. SEC Raises Exchange Act Registration, Termination and Suspension Thresholds to Conform with JOBS Act and FAST Act Yesterday, the U.S. Securities and Exchange Commission
More informationCFTC Staff Issues Time-Limited No-Action Relief from Some Swap Data Reporting Requirements for Certain Counterparties
April 12, 2013 CFTC Staff Issues Time-Limited No-Action Relief from Some Swap Data Reporting Requirements for Certain Counterparties Key Takeaways: > Non-SD/MSP financial entities now have until May 29,
More informationCommittee of European Securities Regulators consults on client classification under MiFID
July 2010 Stop Press Committee of European Securities Regulators consults on client classification under MiFID The Committee of European Securities Regulators ( CESR ) published on 12 July a consultation
More informationChina Finalises Rules on Cross-Border Transfer
20 May 2017 China Finalises Rules on Cross-Border Transfer of Personal Information and Important Data Important Clarifications Included; Basic Structure Unaffected Contents Measures on the Security Assessment
More informationNew Data Regulation, Brexit and the Pensions Industry.
December 2016 New Data Regulation, Brexit and the Pensions Industry. Thanks to high profile news coverage of data breaches and increasingly sophisticated cyber-crime, the public s awareness of privacy
More informationAdjustment and claw back of bonuses: new rules since 1 January 2014
January 2014 Adjustment and claw back of bonuses: new rules since 1 January 2014 Introduction With immediate effect as from 1 January 2014, long-awaited legislation on the adjustment and claw back of bonuses
More informationIRS Provides Initial Guidance under Foreign Accounts Legislation.
September 2010 IRS Provides Initial Guidance under Foreign Accounts Legislation. On August 27, 2010, the US Internal Revenue Service ( IRS ) released Notice 2010-60 (the Notice ), which contains guidance
More informationICB Interim Report on UK Banking Reform. 12 April 2011
ICB Interim Report on UK Banking Reform. 12 April 2011 The UK Independent Commission on Banking (the ICB ), chaired by Sir John Vickers, yesterday published its interim report on reforms to the UK banking
More informationPut and call options: Recent Legal and Regulatory Developments
January 2014 Put and call options: Recent Legal and Regulatory Developments 1. Background: Significance of option contracts 1.1 Put and call options on Indian securities (issued by both public and private
More informationDematerialised securities under Luxembourg law.
July 2013 Dematerialised securities under Luxembourg law. The law on (the Law ) of 6 April 2013 has the aim of modernising the Luxembourg law by introducing the possibility to issue. The Law only applies
More informationFAQs on the ISDA Benchmarks Supplement
September 2018 FAQs on the ISDA Benchmarks Supplement The ISDA Benchmarks Supplement was published on 19 September 2018. Linklaters is delighted to have acted as drafting counsel on the project. Set out
More informationEMIR 1.5. July (Regulation EU 648/2012) 2 See the Regulatory Technical Standards and the Annexes published on 4 th October 2016
EMIR 1.5 July 2017 Just as the dust had settled on implementation of the EMIR 1 margin requirements 2, the European Commission recently published a proposal for a new regulation with the aim of simplifying
More informationJuly 16, Key Takeaways: Contents
July 16, 2012 CFTC Proposes Interpretative Guidance on the Extraterritorial Reach of Title VII of the Dodd-Frank Act and Exemptive Relief to Extend Compliance Deadlines for Many Title VII Requirements,
More informationConsultation paper on introducing mandatory clearing and expanding mandatory reporting
Supervision of Markets Division The Securities and Futures Commission 35/F Cheung Kong Center 2 Queen's Road Central Hong Kong Financial Stability Surveillance Division Hong Kong Monetary Authority 55/F
More informationOmnibus 3 - EU proposes centralized approval of certain prospectuses
September 2017 Omnibus 3 - EU proposes centralized approval of certain prospectuses On 20 September, 2017 the European Commission published a package of legislative proposals to further strengthen and
More informationEMIR 2.1 July 2018 EXECUTIVE SUMMARY
EMIR 2.1 July 2018 After almost a year of discussion, on 12 June 2018 the European Parliament approved a revised proposal put forward by the European Commission to amend the terms of EMIR 1. The revised
More informationNew financial sector legislation: what do you need to know?
19 February 2018 New financial sector legislation: what do you need to know? On 6 February 2018, the Luxembourg Parliament adopted two long-awaited laws namely draft bill 7024 which amends inter alia rules
More informationClient Alert June 2017
Financial Services Hong Kong Client Alert June 2017 For further information, please contact: Karen Man +852 2846 1004 karen.man@bakermckenzie.com Samantha Lai +852 2846 2412 samantha.lai@bakermckenzie.com
More informationChina releases highly anticipated provisional Panda bond guidelines. 1
October 2018 China releases highly anticipated provisional Panda bond guidelines. Overview The People s Bank of China ( PBOC ) and the Ministry of Finance ( MOF ) have recently released the highly anticipated
More informationFCA calls for the unbundling of research from dealing commissions
July 2014 FCA calls for the unbundling of research from dealing commissions Introduction On 10 July 2014 the Financial Conduct Authority ("FCA") published a discussion paper (DP14/3) on the use of dealing
More informationNew legal framework for funds in Germany
July 2012 New legal framework for funds in Germany German law-maker uses AIFMD to propose comprehensive new draft law on funds Draft Capital Investment Act introduces uniform and comprehensive legal framework
More informationTakeover Code: September changes to profit forecasts and merger benefit statements regime
September 2013 Takeover Code: September changes to profit forecasts and merger benefit statements regime On 30 September 2013 changes will be made to the Takeover Code s rules on profit forecasts and merger
More informationUK Pensions. Trustees and Money Laundering Systems and reporting requirements. Summary of requirements
UK Pensions. Trustees and Money Laundering Systems and reporting requirements The Money Laundering Regulations 2007 introduce new requirements for anyone who acts by way of business carried on in the UK
More informationTowards a New Prospectus Regulation.
December 2016 Towards a New Prospectus Regulation. Key features for Debt Capital Markets. Political agreement has been reached on a new prospectus regime, which will take the form of a regulation and have
More informationCFTC Staff Grants Relief from Clearing for Multilateral Compression Exercises and Partial Novation and Termination of Certain Swaps
March 22, 2012 CFTC Staff Grants Relief from Clearing for Multilateral Compression Exercises and Partial Novation and Termination of Certain Swaps Key Takeaways: > CFTC staff grants no-action relief permitting
More informationMyanmar accedes to the New York Convention.
July 2013 Myanmar accedes to the New York Convention. Introduction On 15 July 2013, Myanmar formally acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the
More informationRegulatory update (Dodd-Frank series) Derivative regulatory reform in Hong Kong and Singapore
Regulatory update (Dodd-Frank series) Derivative regulatory reform in Hong Kong and Singapore Wednesday 17 th July 2013 Webinar agenda < 60 min Introduction Rebecca Bond, Group Marketing Director Key speaker:
More informationFurther consultation conclusions on introducing mandatory clearing and expanding mandatory reporting. July 2016
Further consultation conclusions on introducing mandatory clearing and expanding mandatory reporting July 2016 TABLE OF CONTENTS INTRODUCTION... 1 DATA FIELDS FOR PHASE 2 REPORTING... 1 Using the HKTR
More informationUK Tax Flash. Reform of the UK CFC Rules: The Next Chapter.
27 January 2010 UK Tax Flash. Reform of the UK CFC Rules: The Next Chapter. The long-awaited discussion document on the reform of the UK s controlled foreign company rules has at last been published by
More informationNew Legislation on Pledges in Russia.
April 2014 New Legislation on Pledges in Russia. On 21 December 2013 a set of amendments to the Civil Code (the Amendments ) 1 was adopted which brought long-awaited improvements to the legislation on
More informationThe Impact of Proposed Volcker Rule Regulations on Activities of Non-U.S. Banks Outside of the United States
October 18, 2011 The Impact of Proposed Volcker Rule Regulations on Activities of Non-U.S. Banks Outside of the United States Contents Last week, the Board of Governors of the Federal Reserve System (the
More informationFinancial Services Risk and Regulation
Financial Services Risk and Regulation Regulatory Updates Newsletter January 2018 www.pwc.com Contents Executive Summary 3 Stress testing principles 4 Cyber Resilience 5 6 7 Bitcoin futures contracts 8
More informationCOMMISSION IMPLEMENTING DECISION. of XXX
EUROPEAN COMMISSION Brussels, XXX [ ](2014) XXX draft COMMISSION IMPLEMENTING DECISION of XXX on the equivalence of the regulatory framework of Hong Kong for central counterparties to the requirements
More informationNew Japanese Margin Regulations for Noncleared OTC Derivative Transactions
May 2016 New Japanese Margin Regulations for Noncleared OTC Derivative Transactions 1 Introduction Following the publication of a policy framework establishing margin requirements for non-centrally cleared
More informationSAIC Releases Guidelines on the Enforcement of the Anti-Monopoly Law with Respect to IP Rights.
May 2015 SAIC Releases Guidelines on the Enforcement of the Anti-Monopoly Law with Respect to IP Rights. Contents On 7 April 2015, the State Administration for Industry and Commerce ( SAIC ) released its
More informationMAJOR NEW DERIVATIVES REGULATION THE SCIENCE OF COMPLIANCE
Regulatory June 2013 MAJOR NEW DERIVATIVES REGULATION THE SCIENCE OF COMPLIANCE Around the world, new derivatives laws and regulations are being adopted and now implemented to give effect to a 2009 agreement
More informationOTC derivatives: Reporting exemption for certain foreign entities in Australia
HKG-1- #1063339- v1-ella Cli ent_briefi ng_- _OTC _reporting_- _Class_wai ver_for_certain_foreig n_entities_- _Feb_2015-2/4/2015 4:01:56 PM OTC derivatives: Reporting exemption for certain foreign entities
More informationGlobal Depositary Receipts and the new EU regime
Global Depositary Receipts and the new EU regime Introduction This note sets out the implications of issuing Global Depositary Receipts ( GDRs ) on an EU regulated market (usually London in the case of
More informationNew Law on the exercise of shareholders rights in listed companies
26 January 2011 New Law on the exercise of shareholders rights in listed companies On 25 November 2010, a law on the exercise of certain rights of shareholders in listed companies was approved by Parliament.
More informationNDRC publishes draft revisions to Administrative Rules for Outbound Investments by Enterprises for public consultation
9 November 2017 China s new approach to regulation of outbound investment. Proposals indicate more comprehensive regulatory scrutiny alongside procedural simplifications Contents NDRC publishes draft revisions
More informationExtension of the Senior Managers and Certification Regime to insurers May 2018
Extension of the Senior Managers and Certification Regime to insurers May 2018 2 Extension of the Senior Managers and Certification Regime to insurers Linklaters 3 Contents 1. Senior Managers Regime 6
More informationBank Negara Malaysia Mr. Chan Kah Som Ms. Kathleen Wong
4th floor, Ropemaker Place 25 Ropemaker Street London EC2Y 9LY United Kingdom +44 20 7260 2000 Phone +44 20 7260 2001 Fax www.markit.com 20 January 2014 Securities Commission Malaysia Ms. Tai Mei Ling
More informationOTC Derivatives Reporting And Clearing Legislation Takes Effect
OTC Derivatives Reporting And Clearing Legislation Takes Effect Introduction The following legislation has taken effect from 31 October 2013, ushering in a new regulatory regime for the reporting and clearing
More informationAn amended regime on foreign investment control came into force on 18 July 2017, introducing stricter rules on German foreign investment control.
July 2017 Federal Government introduced stricter rules on German foreign investment control Berlin Wall rebuilt? Amendment of the German Foreign Trade and Payments Ordinance (AWV) An amended regime on
More informationCourt of Appeal Rules on the ISDA Master Agreement
3 April 2012 Court of Appeal Rules on the ISDA Master Agreement In a decision that will be welcomed by the derivatives market, the Court of Appeal has today handed down judgment in a series of conjoined
More informationHow to compute the one-month period under Article 346,3rd indent Income Tax Code, as applicable before 7 June 2010, in pending tax litigations?
April 2011 How to compute the one-month period under Article 346,3rd indent Income Tax Code, as applicable before 7 June 2010, in pending tax litigations? Contents The Tax Administration has to respect
More informationCOUNTERPARTY CLEARING SYSTEM IN EUROPE
TR É S O R I S K C O N S E I L COUNTERPARTY CLEARING SYSTEM IN EUROPE IAFEI MANILA OCT 2014 NEW REQUIREMENTS GENERAL CONCEPT FOR ALL INSTITUTIONS The new regulation comes into force during 2013 and 2014.
More informationFinal recommendations of Walker review published
November 2009 Final recommendations of Walker review published Walker at a glance: Key recommendations > FTSE 100 banks and major building societies to disclose numbers of high earning employees, within
More informationFinal report Technical advice on third country regulatory equivalence under EMIR Hong Kong
Final report Technical advice on third country regulatory equivalence under EMIR Hong Kong 1 September 2013 ESMA/2013/1160 Date:1 September 2013 ESMA/2013/BS/1160 Table of Contents Table of contents 2
More informationEU VAT: Cross-border chain transactions in the single market under scrutiny Court of Justice of the EU decision in Toridas UAB
August 2017 EU VAT: Cross-border chain transactions in the single market under scrutiny Court of Justice of the EU decision in Toridas UAB A recently published decision of the Court of Justice of the EU
More informationEFET Approach Regarding Unresolved EMIR Implementation Issues 2 May 2013
Amstelveenseweg 998 1081 JS Amsterdam Phone: + 31 20 520 7970 Fax: + 31 346 283 258 Email: secretariat@efet.org Website: www.efet.org EFET Approach Regarding Unresolved EMIR Implementation Issues 2 May
More informationFinancial Services Risk and Regulation
Financial Services Risk and Regulation Regulatory Updates Newsletter April 2018 www.pwc.com Contents Executive Summary 3 4 5 6 7 8 9 10 PwC 2 Executive Summary Emily Lam +852 2289 1247 PwC HK FS Risk and
More informationU.S. Securities Law Briefing.
April 2010 U.S. Securities Law Briefing. Court Modifies Global Research Analyst Settlement. Judge William Pauley of the Southern District of New York recently agreed to modifications to the settlement
More informationComments on the Consultation Paper: Non-centrally Cleared OTC Derivatives Transactions-Margin and Other Risk Mitigation Standards
January 15, 2016 Comments on the Consultation Paper: Non-centrally Cleared OTC Derivatives Transactions-Margin and Other Risk Mitigation Standards, issued by the Hong Kong Monetary Authority Japanese Bankers
More informationOversight. Mutual Recognition of Funds between France and Hong Kong. Introduction. August 2017 simmons-simmons.com elexica.com
Oversight August 2017 simmons-simmons.com elexica.com Mutual Recognition of Funds between France and Hong Kong Introduction The Securities and Futures Commission of Hong Kong (SFC) and the Autorité des
More informationRenewable energy : new wind tariff Order and Governmental renewable measures
Renewable energy : new wind tariff Order and Governmental renewable measures Following cancellation of ministerial Order (arrêté) dated 10 July 2006 enacting the feed-in tariff applicable to wind farms
More informationNew obligation for unlisted Hong Kong companies to keep a register of their significant controllers
January 2018 New obligation for unlisted Hong Kong companies to keep a register of their significant controllers Does your company know who all of its ultimate significant controllers are? Will you be
More informationTerritorial Scope of Reporting, Clearing and Trading
Regulatory reforms charting a new course Territorial Scope of Reporting, Clearing and Trading Chris Bates May 2014 EMIR and MiFID2/MiFIR: timeline 15 March 2013 Confirmations Daily valuation NFC+ reporting
More information