MFA Submits Letter to Hong Kong on OTC Derivatives Reporting Rules

MFA submitted comments to the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) in response to their joint “Consultation Paper on the Securities and Futures (OTC Derivatives Transactions – Reporting and Record Keeping) Rules.”   In the letter, among other things, MFA requested that the HKMA and SFC: (1) adopt an equivalence regime that would allow for recognition of other jurisdictions’ equivalent regulatory regimes; (2) impose the obligation to report solely on the dealer (and not also the fund) where a fund is transacting with the dealer; (3) increase the timeframe for implementation of the reporting obligation to 12 months, instead of using the proposed 3-6 months.  In addition, in the letter, MFA supported the HKMA’s and SFC’s proposal not to require fund managers to report historical transactions (i.e., backload) entered into on behalf of the funds they manage.  MFA also emphasized the importance of maintaining utmost confidentiality of the transaction data reported to the Hong Kong Trade Repository established by the HKMA.