Earlier today, the Hong Kong Monetary Authority announced their intention to adopt the BCBS/IOSCO’s revised implementation schedule.
Their updated deadlines are as follows:
- For target institutions with Non-Cleared OTC derivatives of more than HKD 375 billion the date will be 1 September 2020.
- For target institutions with Non-Cleared OTC derivatives of more than HKD 60 billion the threshold will be 1 September 2021.
The change is that the authority has added the HKD 375 billion threshold, and pushed the current threshold back to September 2021. In an unsurprising move, HKMA has also stated that parties will ‘act diligently to make all arrangements on a timely basis and comply with the requirements by this revised timeline’. By this point, this phrase is becoming synonymous with Theresa May’s echoes of a ‘strong and stable Brexit’, in the sense that it sounds very comforting, but we do not know what it entails.
As we have already reported, Korea’s FSS, Canada’s OSFI, CFTC and Singapore’s MAS have joined the delay and Australia’s APRA has published a consultation on the subject suggesting that it will act in a similar manner. Brazil have stated that their two-phase approach will come into effect on 1 September 2019. In America, the US Prudential Regulators are taking necessary steps to comply with the Phase 6 delay. The EU-sized elephant in the room is yet to make itself known, but the expectation is that they too will revise their IM requirements.Contact Us