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HKMA Reporting

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HKMA Reporting Solution

The Hong Kong Monetary Authority’s (HKMA) transaction reporting regime for OTC derivatives was first introduced in July 2015. Since then, reporting requirements have been mandated for authorized institutions (AI), approved money brokers (AMB) and license corporations (LC) under Securities and Futures (Amendment) Ordinance 2014. Transactions are mandated to be reported on a T+2 basis.

Reporting for the Hong Kong regime differs from transaction reporting in other jurisdictions in that while other jurisdictions typically have a range of regulated, private trade repositories, for Hong Kong there is only one – the HKMA TR. Firms with a reporting obligation have the option of reporting directly to the TR, or via a “submitting agent”. S&P Global is one of the two approved submitting agents to HKMA TR.

In 2015, CPMI-ISOCO published a consultation paper and provided guidance in terms of how reporting of OTC derivatives should be standardized. From there, we have witnessed several G20 regulators having published their own version of the consultation papers adapted for their local market. More recently, it has been widely speculated that new reporting rules and field requirements will be targeted to go live in late 2022 to mid-2023. In 2021, SFC concluded a consultation paper to introduce a list of updates to the AIDG specifications throughout 2022.

Cappitech specializes in preparing firms for new and changing regulatory reporting obligations. We can help you with the upcoming reporting changes and provide you with the peace of mind you need, knowing our solution is trusted by over 500 customers around the world.

Streamline your HKMA derivatives reporting
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How Cappitech Can Solve Your HKMA Reporting Obligations

Industry regulatory expertise
Trade determination and eligibility logic
Integration with any source system (vendor or proprietary)
Ability to ingest data in any format
Robust infrastructure to handle large volumes
Numerous connectivity options
Full transparency into submissions with metrics and MIS
Comprehensive reconciliation tool

How the Cappitech Solution Works

1
Integrate
Trade, product and entity data from customer
2
Validate
Data is validated for reporting eligibility and field content
3
Enrich
Reports enriched with static and dynamic data
4
Review
Report is submitted to a Trade Repository and review notification are updated to the web dashboard

See it in action

Asic_platform
Automate and monitor your reporting with our multi-regulation platform, a single platform for all your transaction reporting needs. From a single dashboard you can get a visual status overview of your reported trades and review complete transaction lifecycles. Use our sophisticated filtering and search functionality to easily investigate individual trade submissions.
Asic_insights
Gain insights into your transaction reporting; improve KPIs on accuracy, completeness and timeliness of your submissions. Monitor and improve your rejection rates by viewing the top reasons for rejections. Historical reports for rejected trades can be viewed and analysed, enabling firms to improve their reporting.

What is HKMA reporting?

Post the Great Financial Crisis in 2009, Dodd-Frank was first introduced as one of the largest and most comprehensive financial regulations. One of the main objectives was to restore public confidence and to prevent another financial crisis from occurring.

Regulators around the world have introduced its version of financial regulation in the OTC space. The Hong Kong Monetary Authority’s (HKMA) transaction reporting regime for OTC derivatives was first introduced in July 2015 for firms to submit details of their derivatives transactions to the HKMA trade repository.

 

Which financial institutions are in scope for HKMA reporting?

  • The mandatory reporting obligations apply to an entity that is:
  • Authorized institutions (see HKMA Register of Authorized Institutions for this)
  • Approved money brokers (see HKMA list of approved money brokers)
  • Licensed corporations (see the Securities and Futures Commission public register of licensed persons & registered institutions)
  • Recognized clearing houses
  • There is an exemption for firms with under USD 30 million of aggregated notional amount of all outstanding OTC derivatives transactions.

 

Which products need to be reported under HKMA?

All OTC derivatives across Interest Rates, Credit, Equity and, FX derivatives.

 

When do the HKMA rules rewrite come into effect?

CPMI-ISOCO harmonization of reporting standards was aimed to commence late 2022. Each regulator may have their own time line around that targeted commencement period.

The updates to AIDG specifications will happen throughout 2022.

 

When does HKMA rules rewrite come into effect?

CPMI-ISOCO harmonization of reporting standards was aimed to commence late 2022. Each regulator may have their own time line around that targeted commencement period.

The updates to AIDG specifications will happen throughout 2022.

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