HKMA and SFC conclude joint consultation on amendments to Clearing Rules for over-the-counter derivative transactions
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) today (June 5) issued joint consultation conclusionson standardising the calculation periods (Note 1) for each year under the Clearing Rules (Note 2) 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 HKMA and the SFC consulted the public in early 2026 on proposals to designate, once and for all, standard calculation periods for each year with effect from March 1, 2027 (Note 3). This would improve on the current approach where the existing list of calculation periods specified in the Clearing Rulesneeds to be updated by legislative amendments regularlyto facilitate the central clearing of OTC derivative transactions.
In view of broad market support, the HKMA and the SFC will proceed with the legislative process to introduce the proposed amendments to the Clearing Rules, and aim to bring the amendments into effect on March 1, 2027, i.e., the starting date of the proposed new series of Calculation Periods.
Note 1: Under the Clearing Rules, a calculation period is used to determine whether a person is subject to mandatory clearing obligation, based on the size of its applicable position in relevant OTC derivative transactions for a specified period as calculated in accordance with the Clearing Rules.
Note 2: The Securities and Futures (OTC Derivative Transactions – Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules.
Note 3:Under the proposed approach to be effective from March 1, 2027 onwards, the Clearing Rules will be amended to designate two calendar periods, i.e., March 1 to May 31 and September 1 to November 30, in each year as calculation periods.
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Employers, contractors and employees should be aware of electrical safety at work during rainstorms
As the rainstorm warning has been issued by the Hong Kong Observatory, the Labour Department (LD) reminds employers and contractors that they should adopt necessary work arrangements and take suitable safety measures to protect the safety of their employees when they are carrying out electrical work or handling electrical plant.
A spokesman for the LD said today (June 6) that employers and contractors should avoid assigning employees to carry out electrical work (such as electric arc welding work) or handle electrical plant at places affected by rainstorms, and should refer to the "Code of Practice in Times of Adverse Weather and 'Extreme Conditions'" and the "Guide on Safety at Work in times of Inclement Weather" issued by the LD.
Even if electrical work is carried out or electrical plant is handled at places not affected by a rainstorm, suitable safety measures must still be adopted to prevent an electric shock as the air would be more humid. Such measures include:
(i) Ensure that all live parts of an electrical installation are isolated from the power supply source and rendered dead, and the isolation from the power supply source must be maintained as long as electrical work is being carried out;
(ii) Before carrying out any electrical work or handling any electrical plant, cut off and lock out the power supply source, then test the circuit concerned to confirm that it is dead and display suitable warning notices, and issue a work permit thereafter;
(iii) Ensure that protective devices (such as suitable and adequate fuses and circuit breakers) for the electrical installations or electrical plant have been installed and maintained in good working order, and portable electric tools must be double-insulated or properly earthed;
(iv) Provide suitable personal protective equipment such as insulating gloves and insulating mats for employees; and
(v) If live electrical work is unavoidable, a comprehensive risk assessment should be conducted by a competent person and the appropriate safety precautions should be taken to remove or properly control the electrical hazards involved before such work can proceed.
In addition, employees should co-operate with the employer or contractor to follow the safety instructions and use the safety equipment provided.
The LD has published guidebooks and leaflets on electrical work safety. These safety publications are available free from divisional offices of the department or can be downloaded from its website (www.labour.gov.hk/eng/public/content2_8.htm).
Should there be any questions about occupational safety and health matters, please contact the Occupational Safety Officer of the LD at 2559 2297.
Source: AI-found images
