Deemed Comparable Jurisdictions under SPM CR-G-14 for OTC Derivatives Margining

HONG KONG MONETARY AUTHORITY ww�mtfflffl� Banking Policy Department Our Ref: B4/9C B9/129C 8 June 2026 Mrs Lourdes A Salazar Chairperson The OTC Association Unit 1704, 17 /F, Strand 50 50 Bonham Strand East, Sheung Wan Hong Kong Dear Mrs Salazar, Deemed comparable jurisdictions under SPM CR-G-14 By email and by hand We have received several enquiries from Als about whether the list of jurisdictions provided in footnote 27 under paragraph 2.3.2 of the Supervisory Policy Manual (SPM) module CR-G-14 "Non￾centrally Cleared OTC Derivatives Transactions - Margin and Other Risk Mitigation Standards" 1 should be revised, given that the SPM was last updated in 2020. We propose to replace the current reference to WGMR member jurisdictions in paragraph 2.3.2 with BCBS memberjurisdictions. Their margin and risk mitigation standards are deemed comparable from the date of their entry into force. Ais may refer to the BIS website (https://www.bis.org/bcbs/membership.htm) for information on BCBS membership and to the BCBS Basel III implementation dashboard (https://www.bis.org/bcbs/implementation/rcap_reports.htm) for the implementation status of margin requirements among BCBS member jurisdictions. I would be grateful if the Association's comments on the proposed amendment, as set out above, could reach us by 30 June 2026. We are currently reviewing different elements of the SPM module and plan to issue a revised version for industry consultation during the second half of this year. I am writing in similar terms to The Hong Kong Association of Banks. Yours sincerely, Donald Chen Executive Director (Banking Policy) cc: FSTB (Attn: Mr Timothy Wong) 1 https://brdr.hkma.gov.hk/eng/doc-ldg/docId/getPdf/20200911-2-EN/CR-G-14.pdf 55th Floor, Two International Finance Centre, 8 Finance Street, Central, Hong Kong Website: www.hkma.gov.hk 5ili' ii!\ i:p ffi � ffl 1tr s j.m � � � rM i:p ,c,, 2 M 55 tel r.sllJ ±11:: www.hkma.gov.hk