IMF Staff Country Reports

People’s Republic of China-Hong Kong Special Administrative Region: Financial Sector Assessment Program-Oversight and Supervision of Financial Market Infrastructures-Technical Note

July 16, 2014

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People’s Republic of China-Hong Kong Special Administrative Region: Financial Sector Assessment Program-Oversight and Supervision of Financial Market Infrastructures-Technical Note, (USA: International Monetary Fund, 2014) accessed October 15, 2024

Summary

This Technical Note on Oversight and Supervision of Financial Market Infrastructures has been prepared in the context of the Financial Sector Assessment Program for the People’s Republic of China–Hong Kong Special Administrative Region (HKSAR). Nine financial market infrastructures (FMIs) operate in HKSAR; the effectiveness of their supervision and oversight is critical in maintaining financial stability. In order to support their objective of consolidating Hong Kong’s position as an international financial center, the Hong Kong authorities have fostered the development of sophisticated and multicurrency FMIs. The risks associated with domestic and overseas linkages appear to be adequately managed. Extensive domestic and overseas system linkages have been implemented making HKSAR a regional settlement hub. The legal framework should be amended to explicitly prohibit a domestic clearing house from operating in HKSAR without being recognized as such. The respective legal framework and policy mandate determines the actions of the Hong Kong Monetary Authority and the Securities and Futures Commission as the two regulatory, oversight and supervision authorities for FMIs in HKSAR.

Subject: Central counterparty clearing house, Clearing and settlement systems, Financial institutions, Financial markets, Financial regulation and supervision, PFM information systems, Principles for Financial Market Infrastructures, Public financial management (PFM), Securities

Keywords: Authority, Central counterparty clearing house, Clearing and settlement systems, Clearing house, CR, FMIs, Global, HKMA, HKSAR OTC derivative, HKSCC, Hong Kong dollar, Hong Kong FMIs, ISCR, Market participant, Market regulator, OTC clear, OTC derivative transaction, OTC derivatives reform, OTC derivatives reforms in the United States, PFM information systems, Principles for Financial Market Infrastructures, Securities, Trade FMIs, University Officers' Training Corps, Way HKSAR authorities supervise

Publication Details

  • Pages:

    38

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2014/208

  • Stock No:

    1HKGEA2014007

  • ISBN:

    9781498300315

  • ISSN:

    1934-7685