Cap. 571 sub. leg. AL

Securities and Futures (OTC Derivative Transactions—Reporting and Record Keeping Obligations) Rules(Cap. 571, sections 101L and 101P )(Enacting provision omitted—E.R. 3 of 2015)[10 July 2015] Part 1 Preliminary 1. (Omitted as spent—E.R. 1 of 2016) (1) (Omitted as spent—E.R. 3 of 2015)(2) (Omitted as spent—E.R. 1 of 2016) 2. Interpretation In these Rules—affiliate (聯屬公司), in relation to a prescribed person that is a licensed corporation, an authorized financial institution or an approved money broker, means a corporation that is in the same group of companies as the person, except a corporation that is a collective investment scheme; ATS-CCP (自動化交易服務中央對手方) means a person authorized under section 95(2) of the Ordinance to provide automated trading services, but only when the person is— (a) providing services that it is authorized to provide; and (b) acting in its capacity as a central counterparty; authorized financial institution incorporated in Hong Kong (在香港成立為法團的認可財務機構) means an authorized institution incorporated in Hong Kong as defined by section 2(1) of the Banking Ordinance (Cap. 155); (14 of 2025 s. 256)authorized financial institution incorporated outside Hong Kong (在香港以外地方成立為法團的認可財務機構) means an authorized institution incorporated outside Hong Kong as defined by section 2(1) of the Banking Ordinance (Cap. 155); (14 of 2025 s. 256)electronic reporting system (電子匯報系統) means the electronic system operated by or on behalf of the Monetary Authority for submitting and receiving reports on specified OTC derivative transactions for the purposes of these Rules and section 101B of the Ordinance; excluded currency contract (豁除貨幣合約) means an OTC derivative product that is a forward contract for the sale or purchase of a currency which— (a) is entered into for the purpose of settling a sale or purchase of securities denominated in that currency; and (b) is intended to be settled by the actual delivery of that currency, by the earlier of the following days—(i) the last day of the customary settlement period for the securities referred to in paragraph (a);(ii) the seventh business day after the day on which the forward contract is executed; (L.N. 30 of 2016) exempt person (獲豁免人士) has the meaning given by rule 3;grace period (寬限期), in relation to a prescribed person, means the period of 3 months beginning on the starting day; (L.N. 30 of 2016)local branch (本地分行), in relation to a prescribed person that is an authorized financial institution incorporated outside Hong Kong, has the meaning given by section 2(1) of the Banking Ordinance (Cap. 155) except that it includes its principal place of business in Hong Kong;outstanding (未完結), in relation to an OTC derivative transaction on a particular day, means the transaction has not, as at that day, matured or been terminated;previous Rules (先前的規則) means the Securities and Futures (OTC Derivative Transactions—Reporting and Record Keeping Obligations) Rules as in force immediately before the specification day; (L.N. 30 of 2016)RCH (認可結算所) means a person that is a recognized clearing house, but only when the person is acting in its capacity as a central counterparty;relevant CIS (相關集體投資計劃) has the meaning given by Part 2 of Schedule 5 to the Ordinance; (L.N. 61 of 2023)specification day (指明日期) means 1 July 2017; (L.N. 30 of 2016)specified OTC derivative transaction (指明場外衍生工具交易) has the meaning given by section 101A of the Ordinance; starting day (開始日期), in relation to a prescribed person, means the later of— (a) the specification day; (b) the day on which the person becomes a prescribed person; and (c) if applicable, the day on which the person ceases to be regarded as an exempt person; (L.N. 30 of 2016) subsequent event (其後事件), in relation to a specified OTC derivative transaction, means an event that occurs after the transaction was entered into, and which affects the terms and conditions on which the transaction was entered into or the persons involved in entering into the transaction;terminated (被終止), in relation to an OTC derivative transaction, means the transaction is terminated in accordance with the terms and conditions of the transaction or by agreement between the counterparties to the transaction, before the transaction matures;transaction information (交易資料), in relation to a specified OTC derivative transaction, has the meaning given by rule 2A; (L.N. 30 of 2016)Type 13 intermediary (第13類中介人), in relation to a prescribed person, means a licensed corporation or an authorized financial institution that is licensed or registered for Type 13 regulated activity; (L.N. 61 of 2023)valuation transaction information (交易估值資料), in relation to a specified OTC derivative transaction, means the information and particulars which are within the category of information and particulars specified in item 11 of Schedule 1, and which satisfy the requirement referred to in paragraph (b)(ii) of the definition of transaction information in rule 2A(1). (L.N. 30 of 2016)(L.N. 30 of 2016) 2A. Meaning of transaction information (1) In these Rules— transaction information (交易資料), in relation to a specified OTC derivative transaction, means the information and particulars relating to the transaction (including information and particulars relating to a subsequent event and valuation transaction information), and to the persons involved in the transaction, which— (a) must be submitted to the Monetary Authority for complying with the reporting obligation; and (b) are—(i) within a category of information and particulars specified in column 2 of Schedule 1; and(ii) required for completing a data field that is specified by the Monetary Authority in accordance with subrule (2) in relation to the class or description of specified OTC derivative transactions to which the transaction belongs. (2) For the purposes of paragraph (b)(ii) of the definition of transaction information in subrule (1), the Monetary Authority may, after consultation with the Commission and by notice published in the Gazette, specify in relation to a class or description of specified OTC derivative transactions, the data fields that must be completed by a prescribed person in relation to a specified OTC derivative transaction for complying with the reporting obligation.(3) A notice published under subrule (2) is not subsidiary legislation.(L.N. 30 of 2016) 3. When prescribed person to be regarded as exempt person (1) Subject to subrule (4), for the purposes of rules 10(1)(a), 11(1)(a), 12(1)(a) and 13(1)(a), a prescribed person that is a licensed corporation, an authorized financial institution or an approved money broker is to be regarded as an exempt person if the person satisfies the requirements in subrule (2). (L.N. 30 of 2016)(2) The requirements are that, on or at any time after the specification day— (L.N. 30 of 2016)(a) the sum of the notional amounts of all outstanding specified OTC derivative transactions to which the prescribed person is a counterparty does not exceed US$30 million;(b) rule 10(1)(b), 11(1)(b), 12(1)(c) or 13(1)(b) (as applicable) does not apply to the prescribed person in relation to any specified OTC derivative transaction; and (c) if the prescribed person is an authorized financial institution incorporated outside Hong Kong, rule 12(1)(b) does not apply to the person in relation to any specified OTC derivative transaction. (L.N. 30 of 2016)(3) For the purposes of subrule (2)(a), a prescribed person that is an authorized financial institution incorporated outside Hong Kong is to be regarded as a counterparty to an OTC derivative transaction if the person is a counterparty to the transaction and the transaction is recorded in the form of an entry in the books of a local branch of the person.(4) Despite subrule (1), the prescribed persons referred to in subrule (4A) are not eligible to be regarded as exempt persons for the purposes of rule 10(1)(a), 11(1)(a), 12(1)(a) or 13(1)(a) (as applicable). (L.N. 30 of 2016)(4A) The prescribed persons are persons that, under the previous Rules—(a) reported a specified OTC derivative transaction to the Monetary Authority;(b) under rule 17(1) or 18(1), were taken to have reported a specified OTC derivative transaction to the Monetary Authority; or(c) were required to report a specified OTC derivative transaction to the Monetary Authority but had not reported the transaction to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise). (L.N. 30 of 2016)(5) A prescribed person that ceases to satisfy a requirement in subrule (2)—(a) is not eligible to again be regarded as an exempt person; and (L.N. 30 of 2016)(b) ceases to be regarded as an exempt person on the day on which the person ceases to satisfy the requirement. (L.N. 30 of 2016) 4. When prescribed person to be regarded as having conducted transaction in Hong Kong on behalf of affiliate (1) For the purposes of rules 10(1)(b), 11(1)(b), 12(1)(c) and 13(1)(b), a prescribed person is to be regarded as having conducted a specified OTC derivative transaction in Hong Kong on behalf of an affiliate of the person if—(a) the affiliate is a counterparty to the transaction; and(b) one of the individuals who made the decision for the affiliate to enter into the transaction—(i) acted in his or her capacity as a trader; and(ii) was employed or engaged by the person to perform his or her duties predominantly in Hong Kong.(2) Subrule (1) applies to a prescribed person in relation to a specified OTC derivative transaction even if the transaction was conducted wholly or partially outside Hong Kong. 5. Persons specified as prescribed persons for reporting obligation For the purposes of paragraph (a)(iv) of the definition of prescribed person in section 101A of the Ordinance, the following persons are specified as being subject to the reporting obligation—(a) an RCH;(b) an ATS-CCP. 6. Persons specified as prescribed persons for record keeping obligation For the purposes of paragraph (d)(iv) of the definition of prescribed person in section 101A of the Ordinance, the persons specified as being subject to the record keeping obligation are the persons specified under rule 5 as being subject to the reporting obligation. 7. Transactions that are specified OTC derivative transactions for purposes of reporting obligation For the purposes of paragraph (a) of the definition of specified OTC derivative transaction in section 101A of the Ordinance, an OTC derivative transaction (except a transaction in an excluded currency contract) is specified for the purposes of the reporting obligation. (L.N. 30 of 2016) 8. Transactions that are specified OTC derivative transactions for purposes of record keeping obligation For the purposes of paragraph (d) of the definition of specified OTC derivative transaction in section 101A of the Ordinance, an OTC derivative transaction (except a transaction in an excluded currency contract) is specified for the purposes of the record keeping obligation. (L.N. 30 of 2016) Part 2 Reporting Obligation Division 1 Reporting by Prescribed Persons 9. When reporting obligation arises (1) A prescribed person that is required by rule 10, 11, 12, 13, 14 or 15 to report a specified OTC derivative transaction to the Monetary Authority must report the transaction to the Monetary Authority in accordance with rule 20 in the circumstances specified in subrule (2).(2) The circumstances are—(a) when rule 10, 11, 12, 13, 14 or 15 first begins to apply to the prescribed person in relation to the specified OTC derivative transaction; and(b) if applicable, each time a subsequent event occurs while the transaction is still outstanding. 10. Reporting by licensed corporations (1) A prescribed person that is a licensed corporation must report a specified OTC derivative transaction to the Monetary Authority if the person—(a) subject to subrule (3), is a counterparty to the transaction; or(b) conducted the transaction in Hong Kong on behalf of an affiliate of the person within the meaning of rule 4(1).(2) The transaction referred to in subrule (1)(a) includes a transaction that is still outstanding on the starting day.(2A) The transaction referred to in subrule (1)(b) includes a transaction that is still outstanding on the specification day and which, under the previous Rules—(a) was reported to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong; or(b) the person was required to report to the Monetary Authority but the person had not reported to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise). (L.N. 30 of 2016)(3) Subrule (1)(a) does not apply to a prescribed person that is—(a) an exempt person; or(b) a Type 13 intermediary that is a counterparty to the transaction in its capacity as a trustee of a relevant CIS. (L.N. 61 of 2023) 11. Reporting by authorized financial institutions incorporated in Hong Kong (1) A prescribed person that is an authorized financial institution incorporated in Hong Kong must report a specified OTC derivative transaction to the Monetary Authority if the person—(a) subject to subrule (3), is a counterparty to the transaction; or(b) conducted the transaction in Hong Kong on behalf of an affiliate of the person within the meaning of rule 4(1).(2) The transaction referred to in subrule (1)(a) includes a transaction that is still outstanding on the starting day.(2A) The transaction referred to in subrule (1)(b) includes a transaction that is still outstanding on the specification day and which, under the previous Rules—(a) was reported to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong; or(b) the person was required to report to the Monetary Authority but the person had not reported to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise). (L.N. 30 of 2016)(3) Subrule (1)(a) does not apply to a prescribed person that is—(a) an exempt person; or(b) a Type 13 intermediary that is a counterparty to the transaction in its capacity as a trustee of a relevant CIS. (L.N. 61 of 2023) 12. Reporting by authorized financial institutions incorporated outside Hong Kong (1) A prescribed person that is an authorized financial institution incorporated outside Hong Kong must report a specified OTC derivative transaction to the Monetary Authority if the person—(a) subject to subrule (3), is a counterparty to the transaction and the transaction is recorded in the form of an entry in the books of a local branch of the person;(b) is a counterparty to the transaction and—(i) the transaction is recorded in the form of an entry in the books of—(A) the principal place of business outside Hong Kong of the person; or(B) a branch (other than a local branch) of the person; and(ii) one of the individuals who made the decision for the person to enter into the transaction—(A) acted in his or her capacity as a trader; and(B) was employed or engaged by the person to perform his or her duties predominantly in Hong Kong; or(c) conducted the transaction in Hong Kong on behalf of an affiliate of the person within the meaning of rule 4(1).(2) The transaction referred to in subrule (1)(a) includes a transaction that is still outstanding on the starting day.(2A) The transaction referred to in subrule (1)(b) or (c) includes a transaction that is still outstanding on the specification day and which, under the previous Rules—(a) was reported to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong; or(b) the person was required to report to the Monetary Authority but the person had not reported to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise). (L.N. 30 of 2016)(3) Subrule (1)(a) does not apply to a prescribed person that is—(a) an exempt person; or(b) a Type 13 intermediary that is a counterparty to the transaction in its capacity as a trustee of a relevant CIS. (L.N. 61 of 2023) 13. Reporting by approved money brokers (1) A prescribed person that is an approved money broker must report a specified OTC derivative transaction to the Monetary Authority if the person—(a) subject to subrule (3), is a counterparty to the transaction; or(b) conducted the transaction in Hong Kong on behalf of an affiliate of the person within the meaning of rule 4(1).(2) The transaction referred to in subrule (1)(a) includes a transaction that is still outstanding on the starting day.(2A) The transaction referred to in subrule (1)(b) includes a transaction that is still outstanding on the specification day and which, under the previous Rules—(a) was reported to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong; or (b) the person was required to report to the Monetary Authority but the person had not reported to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise). (L.N. 30 of 2016)(3) Subrule (1)(a) does not apply to a prescribed person that is an exempt person. (L.N. 30 of 2016) 14. Reporting by RCHs (1) A prescribed person that is an RCH must report a specified OTC derivative transaction to the Monetary Authority if the person is a counterparty to the transaction.(2) The transaction referred to in subrule (1) includes a transaction that is still outstanding on the starting day. 15. Reporting by ATS-CCPs (1) A prescribed person that is an ATS-CCP must report a specified OTC derivative transaction to the Monetary Authority if the person is a counterparty to the transaction and the other counterparty to the transaction is a company.(2) The transaction referred to in subrule (1) includes a transaction that is still outstanding on the starting day. 16. Reporting obligation applies even if counterparty is, or transaction was entered into, outside Hong Kong (L.N. 30 of 2016)For the purposes of this Division, a prescribed person must report a specified OTC derivative transaction to the Monetary Authority even if—(a) a counterparty, or more than one counterparty, to the transaction is a person outside Hong Kong; or(b) the transaction was entered into wholly or partially outside Hong Kong. Division 2 Circumstances in which Reporting Obligation is Taken to have been Complied with 17. Licensed corporations, authorized financial institutions or approved money brokers taken to have reported entering into of transaction if affiliate has reported (1) If a prescribed person that is a licensed corporation, an authorized financial institution or an approved money broker is required by rule 10(1)(b), 11(1)(b), 12(1)(c) or 13(1)(b) to report a specified OTC derivative transaction to the Monetary Authority in a circumstance specified in rule 9(2)(a), the person is taken to have complied with the reporting obligation in that circumstance if the person satisfies the requirement in subrule (2).(2) The requirement is that the prescribed person has received, in good faith, a written confirmation from the affiliate of the person on whose behalf the person conducted the specified OTC derivative transaction in Hong Kong that the affiliate has reported the entering into of the transaction to the Monetary Authority (whether directly or indirectly) in accordance with rule 20 (as that rule applies to the person in relation to the circumstance). 18. Licensed corporations, authorized financial institutions or approved money brokers taken to have reported subsequent event if affiliate has reported (1) If a prescribed person that is a licensed corporation, an authorized financial institution or an approved money broker is required by rule 10(1)(b), 11(1)(b), 12(1)(c) or 13(1)(b) to report a specified OTC derivative transaction to the Monetary Authority in a circumstance specified in rule 9(2)(b), the person is taken to have complied with the reporting obligation in that circumstance if the person satisfies the requirement in subrule (2).(2) The requirement is that the prescribed person has received, in good faith, a written confirmation from the affiliate of the person on whose behalf the person conducted the specified OTC derivative transaction in Hong Kong that the affiliate has reported the subsequent event to the Monetary Authority (whether directly or indirectly) in accordance with rule 20 (as that rule applies to the person in relation to the circumstance). Division 3 Reporting to Monetary Authority 19. (Repealed L.N. 30 of 2016) 20. Transaction information to be submitted to Monetary Authority in accordance with this Division A prescribed person that is required by rule 9(1) to report a specified OTC derivative transaction to the Monetary Authority must submit the transaction information for the transaction to the Monetary Authority in accordance with this Division. 21. Reporting by means of electronic reporting system (1) The transaction information for a specified OTC derivative transaction that is required to be submitted to the Monetary Authority under these Rules is to be regarded as duly submitted only if it is submitted—(a) by means of the electronic reporting system; and(b) in accordance with the directions and instructions referred to in subrule (2)(2) The Monetary Authority must publish, in the manner the Monetary Authority considers appropriate, directions and instructions for the use of the electronic reporting system and the submission of the transaction information for a specified OTC derivative transaction by means of the system. 22. (Repealed L.N. 30 of 2016) 23. Reporting outstanding transactions (L.N. 30 of 2016)(1) Subject to subrule (5) and rule 25B, a prescribed person to which the requirement in subrule (3) applies must submit the transaction information for a specified OTC derivative transaction to the Monetary Authority no later than the last day of the grace period. (L.N. 30 of 2016)(2) (Repealed L.N. 30 of 2016)(3) The requirement referred to in subrule (1) is a requirement to report to the Monetary Authority a specified OTC derivative transaction that is still outstanding on the first day of the grace period.(4) The transaction information for a specified OTC derivative transaction referred to in subrule (1) is the transaction information comprising—(a) the transaction information as at the first day of the grace period, reflecting the net effect of all subsequent events that have occurred since the transaction was entered into; and(b) in chronological order, the transaction information for each subsequent event that has occurred since the first day of the grace period until a day which is not earlier than 2 business days before the day on which the transaction information is submitted.(5) A prescribed person is not required to submit the transaction information for a specified OTC derivative transaction that has matured or been terminated before the end of the grace period to the Monetary Authority. 24. Reporting transactions entered into on or after starting day (L.N. 30 of 2016)(1) A prescribed person to which the requirement in subrule (3) applies must submit the transaction information for a specified OTC derivative transaction to the Monetary Authority within 2 business days after the transaction is entered into.(2) (Repealed L.N. 30 of 2016)(3) The requirement referred to in subrule (1) is a requirement to report to the Monetary Authority a specified OTC derivative transaction that is entered into on or after the starting day.(L.N. 30 of 2016) 25. Reporting subsequent events (1) Subject to subrules (2) and (3) and rule 25B, a prescribed person referred to in subrule (1A) must submit the transaction information for a subsequent event to the Monetary Authority within 2 business days after the event occurs. (L.N. 30 of 2016)(1A) Subrule (1) applies to a prescribed person that, in relation to a specified OTC derivative transaction—(a) has submitted the transaction information for the transaction to the Monetary Authority in accordance with rule 23 or 24 (including a prescribed person that has submitted the transaction information for the transaction to the Monetary Authority despite rule 23(5)); or(b) was required to submit the transaction information for the transaction to the Monetary Authority in accordance with rule 23 or 24, but failed to do so. (L.N. 30 of 2016)(2) If a prescribed person submitted the transaction information for one, or more than one, subsequent event to the Monetary Authority under rule 23(4), subrule (1) applies to the person only in relation to a subsequent event that occurs after the last subsequent event that was included in the submission. (L.N. 30 of 2016)(3) If a prescribed person is required to submit the transaction information for a subsequent event to the Monetary Authority under subrule (1), and more than one subsequent event occurs on the same day, the person is only required to submit the transaction information once for that day provided that the transaction information submitted incorporates all of the subsequent events that occurred on that day.(4) Subrule (1) does not require a person to submit the transaction information for a subsequent event that has occurred after the day on which the person ceases to be a prescribed person. 25A. Submitting valuation transaction information (1) Subject to rule 25B, a prescribed person referred to in subrule (2) must submit the valuation transaction information for a specified OTC derivative transaction to the Monetary Authority for every day on which the transaction is still outstanding, within 2 business days after the day to which the valuation transaction information relates.(2) Subrule (1) applies to a prescribed person that, in relation to a specified OTC derivative transaction—(a) has submitted the transaction information for the transaction to the Monetary Authority in accordance with rule 23 or 24 (including a prescribed person that has submitted the transaction information for the transaction to the Monetary Authority despite rule 23(5)); or(b) was required to submit the transaction information for the transaction to the Monetary Authority in accordance with rule 23 or 24, but failed to do so.(L.N. 30 of 2016) 25B. Modified requirements for transactions reported to Monetary Authority under previous Rules (1) Rules 23, 25 and 25A apply to a prescribed person in relation to a specified OTC derivative transaction referred to in subrule (2) subject to the modifications specified in subrule (3), (5) or (7) (as applicable).(2) The specified OTC derivative transaction is a transaction—(a) that is still outstanding on the specification day; and(b) for which previous transaction information was, before the specification day and under the previous Rules, submitted to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong.(3) If, on the specification day, the transaction has a maturity day that is before 1 July 2018, subject to subrule (7)—(a) rule 23(1) applies to the prescribed person in relation to the transaction as if it required the person to submit the previous transaction information to the Monetary Authority on the specification day;(b) rule 25(1)—(i) is to be construed in relation to the prescribed person as if it applied to a prescribed person that has submitted the previous transaction information for the transaction to the Monetary Authority on the specification day; and(ii) applies until the maturity day to the prescribed person in relation to a subsequent event that occurs on or after the specification day as if the transaction information required to be submitted to the Monetary Authority for the subsequent event is the previous transaction information; (c) rule 25A(1) is to be construed in relation to the prescribed person as if it applied to a prescribed person that has submitted the previous transaction information for the transaction to the Monetary Authority on the specification day.(4) For the purposes of subrule (3)(a), (b)(i) and (c), the prescribed person is taken to have submitted the previous transaction information referred to in subrule (2)(b) to the Monetary Authority on the specification day.(5) If, on the specification day, the transaction has a maturity day that is on or after 1 July 2018—(a) rule 23(1) applies to the prescribed person in relation to the transaction as if it required the person to submit to the Monetary Authority—(i) on the specification day, the previous transaction information; and(ii) by no later than the last day of the grace period, the additional transaction information as at a day (reporting day) which is not earlier than 2 business days before the day on which the additional transaction information is submitted, reflecting the net effect of all subsequent events that have occurred since the transaction was entered into;(b) rule 25(1)—(i) is to be construed in relation to the prescribed person as if it applied to a prescribed person that has submitted the previous transaction information for the transaction to the Monetary Authority on the specification day; and(ii) applies until the reporting day to the prescribed person in relation to a subsequent event that occurs on or after the specification day as if the transaction information required to be submitted to the Monetary Authority for the subsequent event is the previous transaction information;(c) rule 25A(1) is to be construed in relation to the prescribed person as if it applied to a prescribed person that has submitted the previous transaction information for the transaction to the Monetary Authority on the specification day.(6) For the purposes of subrule (5)(a)(i), (b)(i) and (c), the prescribed person is taken to have submitted the previous transaction information referred to in subrule (2)(b) to the Monetary Authority on the specification day.(7) If, in relation to a transaction referred to in subrule (3), on or after the specification day and before 1 July 2018, a subsequent event occurs that has the effect of extending the maturity day of the transaction to a day that is on or after 1 July 2018 (extending event), then—(a) on and from the day on which the extending event occurs, subrule (3) ceases to apply to the prescribed person in relation to the transaction and, subject to paragraph (b), subrule (5) applies to the person in relation to the transaction; and(b) if the extending event occurs on or after the last day of the grace period, subrule (5)(a)(ii) is to be construed as if the reference to the last day of the grace period is a reference to a day that is no later than 2 business days after the day on which the extending event occurs.(8) In this rule—additional transaction information (額外的交易資料) means transaction information that is not previous transaction information;previous transaction information (先前的交易資料) means information and particulars that constituted the transaction information within the meaning of the previous Rules.(L.N. 30 of 2016) 26. Submitting counterparty identifying particulars in certain circumstances (1) A prescribed person that submits the transaction information for a specified OTC derivative transaction to the Monetary Authority in accordance with rule 23 or 24 (including a prescribed person that submits the transaction information for a specified OTC derivative transaction to the Monetary Authority despite rule 23(5)) may submit counterparty masking particulars instead of counterparty identifying particulars in relation to a counterparty to the transaction (other than the person) if— (L.N. 30 of 2016)(a) both of the following requirements are satisfied—(i) the submission of the counterparty identifying particulars is prohibited under the laws of, or by an authority or regulatory organization in, a jurisdiction;(ii) the jurisdiction referred to in subparagraph (i) is a jurisdiction designated by the Commission in accordance with subrule (3); or(b) both of the following requirements are satisfied—(i) the transaction is entered into before 10 January 2016; (L.N. 30 of 2016)(ii) the counterparty consent limitation applies to the person in relation to the transaction.(2) A prescribed person that has submitted counterparty masking particulars under subrule (1) must submit counterparty identifying particulars in relation to the counterparty to the transaction within the following period, unless the transaction has matured or been terminated by the last day of the period—(a) if the person submitted the counterparty masking particulars under subrule (1)(a) and the prohibition referred to in subrule (1)(a)(i) ceases to apply to the transaction—(i) unless subparagraph (ii) applies, 3 months after the day on which the Commission revokes the designation of the jurisdiction under subrule (4); or(ii) if the counterparty consent limitation applies to the person in relation to the transaction on the last day of the period referred to in subparagraph (i), 1 month after the day on which the counterparty consent limitation ceases to apply to the person in relation to the transaction;(b) if the person submitted the counterparty masking particulars under subrule (1)(b), 1 month after the day on which the counterparty consent limitation ceases to apply to the person in relation to the transaction.(3) For the purposes of subrule (1)(a)(ii), the Commission may, with the consent of the Monetary Authority and by notice published in the Gazette, designate any jurisdiction outside Hong Kong if the Commission is satisfied that it is likely that the laws of, or an authority or regulatory organization in, that jurisdiction would prohibit the submission of the counterparty identifying particulars in relation to a counterparty to a specified OTC derivative transaction.(4) The Commission may, with the consent of the Monetary Authority and by notice published in the Gazette, revoke the designation of a jurisdiction made under subrule (3).(5) A notice published in the Gazette by the Commission under subrule (3) or (4) is not subsidiary legislation.(6) In this rule—counterparty consent limitation (對手方的同意限制), in relation to a prescribed person, means the person cannot submit counterparty identifying particulars for a specified OTC derivative transaction because the person is required to obtain consent from a counterparty to the transaction (other than the person) to the submission of the particulars and, despite reasonable efforts, the person has been unable to obtain consent from the counterparty; counterparty identifying particulars (識別對手方身分的詳情) means the following transaction information— (a) the name of a counterparty to a specified OTC derivative transaction; (b) any identifying reference of, or assigned to, a counterparty to a specified OTC derivative transaction, and the type of the identifying reference; (L.N. 30 of 2016) counterparty masking particulars (掩蓋對手方身分的詳情) means the particulars of a counterparty to a specified OTC derivative transaction which describe the counterparty in a way which prevents the ascertainment of the identity of the counterparty. Part 3 Record Keeping Obligation 27. Prescribed persons to keep records in relation to transactions A prescribed person must, in relation to a specified OTC derivative transaction, keep the records specified in rule 29(1) in the manner specified in rule 30 until no earlier than 5 years after the transaction has matured or been terminated. 28. Prescribed persons to keep records even if counterparty is, or transaction was entered into or conducted, outside Hong Kong (L.N. 30 of 2016)Rule 27 applies to a specified OTC derivative transaction even if—(a) a counterparty, or more than one counterparty, to the transaction is a person outside Hong Kong; or(b) the transaction was entered into or conducted wholly or partially outside Hong Kong. 29. Records to be kept by prescribed persons (1) The records that a prescribed person must keep in relation to a specified OTC derivative transaction are—(a) records sufficient to demonstrate that the person has complied with rule 9;(b) without limiting paragraph (a)—(i) the records specified in Schedule 2 relating to the transaction; and(ii) if the person engaged an agent to report the transaction to the Monetary Authority on its behalf—(A) records relating to the agreement between the person and the agent; and(B) records sufficient to demonstrate that the person monitored the reporting by the agent;(c) if rule 10, 11, 12 or 13 (as applicable) does not apply to the person in relation to the transaction because the person is an exempt person— (L.N. 30 of 2016)(i) the records specified in Schedule 2 relating to the transaction; and(ii) records sufficient to demonstrate that the person satisfied the requirements in rule 3(2) at the time the person would, but for rule 3, have been required to report the transaction to the Monetary Authority, including records of any calculation performed for the purpose of ascertaining whether the person satisfied the requirement in rule 3(2)(a);(ca) if rule 10, 11 or 12 (as applicable) does not apply to the person in relation to the transaction by virtue of rule 10(3)(b), 11(3)(b) or 12(3)(b)—(i) the records specified in Schedule 2 relating to the transaction; and(ii) records sufficient to demonstrate that the person is a counterparty to the transaction in the person's capacity as a trustee of a relevant CIS; (L.N. 61 of 2023)(d) if rule 17 or 18 applies to the person in relation to the transaction (the affiliate of the person has reported the entering into of the transaction or the subsequent event to the Monetary Authority), the confirmation received from the affiliate; and(e) if rule 23(5) applies to the person in relation to the transaction (the transaction has matured or been terminated before the end of the grace period), the records specified in Schedule 2 relating to the transaction. (L.N. 30 of 2016)(2) (Repealed L.N. 30 of 2016) 30. Manner in which records to be kept A prescribed person must, in relation to a specified OTC derivative transaction, keep the records specified in rule 29(1) in a manner that enables the records to be readily accessible. Part 4 Subsidiaries Specified by Monetary Authority under Section 101B(5) or 101E(5) of Ordinance—Reporting and Record Keeping Obligations 31. Interpretation of Part 4 In this Part—cessation day (終止日期), in relation to a specified subsidiary, means the day notified by the Monetary Authority to the authorized financial institution incorporated in Hong Kong of which it is a subsidiary as the day on which the specification of the subsidiary is to cease to have effect for the purposes of section 101B(3) or 101E(3) (as applicable) of the Ordinance;effective day (生效日期), in relation to a specified subsidiary, means the later of—(a) the day on which the Monetary Authority’s written notice under section 101B(5) or 101E(5) (as applicable) of the Ordinance is given to the authorized financial institution incorporated in Hong Kong of which it is a subsidiary; and(b) the day specified in the notice referred to in paragraph (a) as the day on which the specification of the subsidiary is to take effect for the purposes of section 101B(3) or 101E(3) (as applicable) of the Ordinance;specified subsidiary (指明附屬公司), in relation to a prescribed person that is an authorized financial institution incorporated in Hong Kong, means—(a) in relation to the reporting obligation, a subsidiary specified by the Monetary Authority under section 101B(5) of the Ordinance for the purposes of section 101B(3) of the Ordinance; and(b) in relation to the record keeping obligation, a subsidiary specified by the Monetary Authority under section 101E(5) of the Ordinance for the purposes of section 101E(3) of the Ordinance. 32. Reporting and record keeping obligations applicable to authorized financial institutions incorporated in Hong Kong in respect of specified subsidiaries (1) Subject to subrule (6), for the purposes of section 101B(3) of the Ordinance, a prescribed person that is an authorized financial institution incorporated in Hong Kong must ensure that a specified subsidiary of the institution complies with the requirement in subrule (2).(2) The requirement referred to in subrule (1) is that, subject to the modifications specified in subrule (5), the specified subsidiary complies with rules 9 and 11 in relation to a specified OTC derivative transaction to which it is a counterparty, as if it were an authorized financial institution incorporated in Hong Kong to which rule 11(1)(a) applies.(3) For the purposes of section 101E(3) of the Ordinance, a prescribed person that is an authorized financial institution incorporated in Hong Kong must ensure that a specified subsidiary of the institution complies with the requirement in subrule (4).(4) The requirement referred to in subrule (3) is that, subject to the modifications specified in subrule (5), the specified subsidiary complies with rule 27 in relation to a specified OTC derivative transaction to which it is a counterparty, as if it were an authorized financial institution incorporated in Hong Kong to which that rule applies.(5) The modifications referred to in subrules (2) and (4) are—(a) a reference to a prescribed person, or to a prescribed person that is an authorized financial institution incorporated in Hong Kong (other than an institution that is an exempt person), is to be construed as a reference to a specified subsidiary; (L.N. 30 of 2016)(b) a reference to the starting day in relation to a prescribed person is to be construed, in relation to a specified subsidiary, as a reference to the effective day; and (L.N. 30 of 2016)(c) a reference to a day on which a person ceases to be a prescribed person is to be construed in relation to a specified subsidiary as a reference to the cessation day.(6) This rule is not to be construed as requiring an authorized financial institution incorporated in Hong Kong to ensure that a specified subsidiary of the institution complies with rule 9 in relation to a specified OTC derivative transaction to which the subsidiary is a counterparty, if rule 11(1)(b) requires the institution to report the same transaction to the Monetary Authority. 33. Transitional arrangements for specification of subsidiary made before specification day (1) A specification of a subsidiary by the Monetary Authority under section 101B(5) of the Ordinance for the purposes of section 101B(3) of the Ordinance, that was in force immediately before the specification day continues to have effect on and after the specification day as if the specification was made on the specification day.(2) A specification of a subsidiary by the Monetary Authority under section 101E(5) of the Ordinance for the purposes of section 101E(3) of the Ordinance, that was in force immediately before the specification day continues to have effect on and after the specification day as if the specification was made on the specification day.(L.N. 30 of 2016) Schedule 1 [rr. 2 & 2A]Transaction Information to be Submitted to Monetary Authority Column 1 Column 2 Item Category of information and particulars relating to specified OTC derivative transaction, and to persons involved in transaction 1. Information and particulars relating to the Monetary Authority’s administration of the reporting of the transaction, including information and particulars identifying— (a) the nature of the report; (b) the person submitting the report; (c) the person that is required to comply with the reporting obligation; and (d) if the person that is required to comply with the reporting obligation is regarded as having conducted the transaction in Hong Kong on behalf of an affiliate of the person, the affiliate. 2. Information and particulars relating to the class or type of product to which the transaction belongs. 3. Days and periods relating to the transaction, including— (a) the day on which the transaction was entered into or on which a subsequent event is agreed; (b) the day on which the transaction or a subsequent event becomes effective; (c) the day on which the transaction matures or terminates; (d) dates or periods relating to a feature of the class or type of product to which the transaction belongs; and (e) dates or periods relating to the reporting of a transaction that is outstanding as at a particular time. 4. Information and particulars relating to the counterparties to the transaction, including names, places of incorporation or residence, identifying references, and rights and obligations arising under, or relating to, the transaction. 5. Information and particulars relating to pricing of the transaction (other than valuation transaction information), including— (a) notional amounts and schedules; (b) reference and settlement currencies; (c) agreed prices, rates or indices; (d) settlement details; and (e) other features or details specific to the class or type of product to which the transaction belongs that may affect the value of the transaction. 6. Information and particulars relating to the confirmation of the transaction, including the platform through which, and the manner in which, the transaction was confirmed and any identifying reference assigned to the transaction by the confirmation platform. 7. Information and particulars relating to the execution of the transaction, including— (a) the platform through which, and the manner in which, the transaction was executed; (b) any identifying reference assigned to the transaction by the execution platform; (c) the day on which, and the time at which, the transaction was executed; and (d) any agent involved in the execution of the transaction. 8. Information and particulars relating to the clearing of the transaction, including— (a) whether the transaction was, or is intended to be, cleared through a central counterparty; (b) if applicable, the central counterparty through which the transaction was, or is intended to be, cleared; (c) identifying references assigned to the original transaction before it is cleared, and the 2 new transactions resulting from the clearing process; (d) the client clearing services provider (if any) involved in, or intended to be involved in, clearing the transaction; and (e) whether or not the clearing obligation applies to the transaction. 9. Information and particulars relating to whether and how the transaction arises from, or is amended as a result of, a portfolio compression exercise. 10. Particulars of any identifying reference assigned to the transaction (being types of references that may be accepted by the Monetary Authority, as specified by the Monetary Authority in the directions and instructions published under rule 21(2)). 11. Information and particulars relating to the valuation of the transaction, including— (a) the basis of the valuation; (b) the day on which, and the time at which, the valuation was calculated; (c) the value of the transaction; and (d) the currency in which the value is denominated. 12. Information and particulars relating to a subsequent event, including— (a) the day on which the event occurred; (b) the type of the event; and (c) the changes resulting from the event to information or particulars submitted to the Monetary Authority. 13. Other information and particulars relating to the transaction, or to the persons involved in the transaction. (Schedule 1 replaced L.N.

30 of 2016) Schedule 2 [rule 29]Records to be Kept by Prescribed Persons 1. Records evidencing the existence and purpose of the specified OTC derivative transaction, including all agreements relating to the transaction. 2. Records showing particulars of the execution of the specified OTC derivative transaction, including orders, ledgers and confirmations of the transaction. 3. Records showing particulars of the terms and conditions of the specified OTC derivative transaction, including particulars relating to all payments and margin requirements relating to the transaction. 4. Records sufficient to demonstrate that the transaction information submitted to the Monetary Authority under Division 3 of Part 2 was accurate.