Circular on Clearing Amendment Rules

2026-11-06

The Securities and Futures (OTC Derivative Transactions—Clearing and Record Keeping Obligations and Designation of Central Counterparties) (Amendment) Rules 2026 (Clearing Amendment Rules) is gazetted (Note 1) today. Subject to negative vetting by the Legislative Council, the Clearing Amendment Rules will be effective on 1 March 2027.

The Clearing Amendment Rules provide standardised calculation periods (Note 2) for each year for over-the-counter (OTC) derivatives transactions to enable more effective internal planning for market participants. This amendment (Note 3) removes the need for recurring legislative amendments to add new calculation periods each year and gives prescribed persons greater certainty.

Licensed Persons are reminded that if their average total position in OTC derivatives during a Calculation Period reaches the corresponding Clearing Threshold (Note 4), relevant OTC derivative transactions they enter on and after the corresponding Prescribed Day must be centrally cleared in accordance with the Clearing Rules. It is the responsibility of Licensed Persons to ensure their compliance with the Clearing Rules.

Supervision of Markets Division
Securities and Futures Commission

End

Notes:

• The gazetted Clearing Amendment Rules can be found on the Government website.

• 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.

• Under the Clearing Amendment Rules to be effective from 1 March 2027 onwards, the two designated calendar periods are 1 March to 31 May and 1 September to 30 November in each year, the respective prescribed days are 1 January and 1 July of the following calendar year.

• The Clearing Threshold for each Calculation Period is set at USD 20 billion.