Hong Kong Postpones Mandatory OTC Clearing

Risk Magazine has confirmed that Hong Kong Exchanges and Clearing (HKEx) has announced that it will delay mandatory over-the-counter clearing expected in October 2013 until January 2014.  This timetable change comes amid growing concerns in Hong Kong and elsewhere about the cross-border application of derivative regulations and issues surrounding the recognition of foreign central counterparties.  Once the mandate comes into effect in January, banks will have a six-month grace period before they must begin clearing in July 2014.