HKMA Reporting Regulation

What is HKMA Reporting?

HKMA Reporting refers to the requirement put in place by the Hong Kong Monetary Authority and the Securities & Futures Commission of Hong Kong for firms to submit details of their derivatives transactions to the HKMA trade repository.

Timelines

The regime is implemented in two phases:

  • Phase 1 Reporting, which entered into effect on 10th July 2015. This only comprised interest rate swaps and FX non-deliverable forwards as reportable instruments.
  • Phase 2 Reporting, which enters into application on 1st July 2017, and covers all asset classes. Firms are required to report transactions covered by the Phase 2 regime from this point onwards, although there is a 3 month grace period for backloading of historical Phase-2-reportable transactions.

Who is affected by this regulation?

The reporting obligation is double-sided, and all of the following firms will be required to report:

  • Authorized institutions (see the HKMA Register of Authorized Institutions for this)
  • Approved money brokers (see the latest HKMA list of approved money brokers)
  • Licensed Corporations (see the Securities and Futures Commission public register of licensed persons & registered institutions)
  • Recognized clearing houses

There is an exemption for firms with under USD 30 million of aggregate gross notional for the product class in question.

Which trades need to be reported?

As mentioned previously, only over-the-counter interest rate swaps and FX NDFs need to be reported under Phase 1. However, Phase 2 will include OTC derivatives of the following asset classes:

  • Credit
  • Commodities
  • Equities
  • FX (reportable forwards are those with over 7 days future delivery)
  • Rates

These instruments are only reportable where they are conducted involving or referencing a currency, or rate or yield denominated in that currency where that is in a pre-determined list set by the HKMA. This list comprises 176 currencies, including all the majors. It is included alongside a list of specified floating interest rate indices for which interest rate swaps are reportable.
Intra-branch and inter-branch trades are not reportable.

When is the deadline for reporting?

T+2, two business days after the trade is executed.

Find out more about UnaVista's G20 Reporting Solution for HKMA reporting.

If you would like more details, please fill in the form below.