Regulation of Over-The-Counter Derivatives: A Comparative Study of Proposals in Singapore and Hong Kong

• Main Author: CHEN, Chao-hung Christopher
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: derivatives; OTC; clearing; reporting; financial regulation; Asian Studies; Commercial Law; Pharmacy and Pharmaceutical Sciences
• Online Access: https://ink.library.smu.edu.sg/sol_research/1253; https://ink.library.smu.edu.sg/context/sol_research/article/3205/viewcontent/RegulationOTCDerivatives_2012_afv.pdf
• Institution: Singapore Management University

This chapter identifies some of the potential legal and policy issues involved in the future regulation of over-the-counter (OTC) derivatives. First, regulators must be cautious in the regulation and solvency of some mammoth clearing- houses. Second, Singapore and Hong Kong both face challenges in the areas of global regulatory cooperation and extra-territorial regulatory effects. Third, the exact scope of a clearing obligation determines whether there is any regulatory competition or room for regulatory arbitrage in the future. Fourth, there are legal definition problems with the term ‘derivative’ and its sub-categories that must be addressed. Fifth, there are potential privacy and civil liability issues in relation to trade reporting.