Page 78 - 期货和衍生品行业监管动态（2022年11月）

期货和衍生品行业监管动态

The Securities and Futures Commission (SFC) today launched a consultation on
proposed risk management guidelines for licensed futures brokers.

The proposed guidelines mainly include qualitative requirements for the control

and management of key risks arising from futures dealing activities. Key proposals

include requiring futures brokers to set prudent client risk limits and comply with

additional requirements relating to commodity futures. They would also be required to

conduct due diligence reviews of executing or clearing agents, safeguard client assets

more properly, and put in place controls relating to trading in futures markets and

handling client assets outside Hong Kong.

In addition, in respect of clients who failed to meet two margin calls by the

settlement deadline without reasonable excuse in the preceding 30 calendar

days, futures brokers would be required to insist on collecting outstanding margin
calls, and, where applicable, follow their in-house policies towards forced liquidation.

Futures brokers would also be required to set thresholds for concessionary margining.

Most of the requirements incorporate existing industry risk management

practices or elaborate on the practical application of existing requirements in the Code

of Conduct for Persons Licensed by or Registered with the Securities and Futures

Commission.

“Recent shocks in the financial and commodity futures markets have

underscored the challenges futures brokers face in times of market volatility,” said Ms

Julia Leung, the SFC’s Deputy Chief Executive Officer and Executive Director of

Intermediaries. “The proposed risk management guidelines aim to provide timely

guidance to futures brokers to help them better manage the risks relating to their

business.”

This consultation follows a fact-finding exercise the SFC conducted in 2021 to

survey the futures brokers’ business and risk management practices. Furthermore,
the key proposals are aligned with regulations in major jurisdictions and have

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