The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) today (5th) issued joint consultation conclusions on standardizing the calculation periods for each year under the Clearing Rules for the over-the-counter (OTC) derivatives regulatory regime.

Respondents to the consultation expressed broad support for the proposed approach to accommodate future Calculation Periods and the corresponding Prescribed Days under the Clearing Rules. There was general consensus that the proposal increases certainty on the clearing obligation, thus enabling more effective internal planning for market participants.

In a move to further increase the efficiency of the operation of the Clearing Rules, the SFC and the HKMA consulted the public in early 2026 on proposals to designate, once and for all, standard calculation periods for each year with effect from 1 March 2027. This would improve on the current approach where the existing list of calculation periods specified in the Clearing Rules needs to be updated by legislative amendments regularly to facilitate the central clearing of OTC derivative transactions.

In view of broad market support, the SFC and the HKMA will proceed with the legislative process to introduce the proposed amendments to the Clearing Rules, and aim to bring the amendments into effect on 1 March 2027, i.e., the starting date of the proposed new series of Calculation Periods.

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