The Hong Kong Monetary Authority (HKMA) requires specified OTC derivative transactions to be reported to HKTR. HKMA reporting obligations in relation to retail OTC Derivatives will come into effect from 1 July 2017. Financial entities that deal in interest rate swaps and non-deliverable forwards should already be meeting their reporting obligations under HKMA.
What needs to be reported?
HKMA requires the following transactions to be reported:
- interest rate derivative contracts
- equity derivative contracts
- credit derivative contracts
- foreign exchange contracts
- commodity derivative contracts
where they are conducted or booked in Hong Kong.
Brokers that deal in the Israeli Shekel derivative have reporting obligations to the Bank of Israel. All non-Israeli firms who hold a position above the threshold (USD15m in aggregate gross notional) are required to report all OTC Derivative on Shekel FX and rates.
Information to be reported
Entities will be required to report the following:
- administration information, including who is submitting the report
- product class and product type
- days and periods relating to the transaction
- information and particulars of counterparties
- information and particulars relating to the pricing of the transaction
- information and particulars of all persons involved in the transaction
- information and particulars relating to the confirmation and execution of the transaction
We note, HKMA has further reporting requirements for information to be provided depending on the product class and product type.
Who is required to report?
The following entities are required to report in accordance with HKMA regulations:
- licensed banks
- restricted licensed banks
- deposit-taking institutions
What are our exact services?
- Register your entity for an LEI
- Extract trading date from your platforms
- Convert trading date into the required formats
- Submit trading data to HKMA
- Reconcile trades as required by law
- Provide a point of contact for any questions or concerns
How can we help you?
TRAction will provide clients with a reporting agents solution in accordance with the reporting requirements outlined above. Please contact us for further information on how TRAction can assist you with Derivative Reporting.