HKEx gets backing for clearing house risk management reform

Source: Securities and Futures Commission

The Securities and Futures Commission (SFC) welcomes consultation conclusions (Note 1) announced by the Hong Kong Exchanges and Clearing Ltd (HKEx) today to implement risk management reform measures for its clearing houses.

The SFC is of the view that the reform measures will enhance the overall stability of the Hong Kong securities and futures markets and strengthen Hong Kong's competitiveness as an international financial centre.

"We believe that these reform measures will enhance substantially the overall soundness of the central counterparties, which are of systemic importance to Hong Kong's financial markets," said Mr Ashley Alder, the SFC's Chief Executive Officer. "The reform measures will better equip our financial system to meet current and future challenges, particularly in light of the continued growth of Hong Kong's markets."

The SFC will work closely with the HKEx and other relevant stakeholders to ensure smooth implementation of the reform measures. It also will continue to monitor global regulatory developments to ensure that regulation of central counterparties is aligned with evolving international standards.

1. On 8 July 2011, the HKEx published the "Consultation Paper on HKEx Clearing House Risk Management Reform Measures". The consultation ended on 28 October 2011. For details, please refer to the HKEx's press release dated 11 March 2012. 

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