Harmonizing Hong Kong’s OTC Derivatives Reporting Regime with International Standards

Hong Kong’s financial regulators have recently announced plans to align the city’s over-the-counter (OTC) derivatives reporting regime, including crypto derivatives, with international standards. The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have jointly released a consultation conclusion outlining changes that will bring the city’s regulations in line with European and global practices.

The new rules, which are scheduled to come into effect on September 29, 2025, will require the use of Unique Transaction Identifiers (UTI), Unique Product Identifiers (UPI), and Critical Data Elements (CDE) for OTC derivatives reporting. These changes are aimed at promoting international standardization and harmonization of data elements reported across global OTC derivatives reporting regimes.

Of particular note is the regulators’ attention to digital asset derivatives. According to the HKMA and SFC, they will accommodate the use of the Digital Token Identifier (DTI) in their reporting requirements, aligning Hong Kong with European efforts to standardize digital asset identification in financial reporting.

Moreover, the regulators have reduced the number of mandated data fields to be more in line with those in the EU, the US, and other APAC jurisdictions. This adjustment strikes a balance between comprehensive reporting and operational efficiency for market participants.

In addition, Hong Kong will be adopting the ISO 20022 XML message standard for OTC derivatives reporting, a move that has garnered widespread support from industry stakeholders. This adoption will ensure consistency with global reporting practices and facilitate cross-border data sharing and analysis.

These regulatory changes signify a significant step in Hong Kong’s efforts to uphold its position as a leading international financial center while aligning its regulations with major crypto and digital asset derivatives markets.