SFC's consultation conclusion on risk management guidelines for futures dealing activities

On 25 August 2023, the Hong Kong Securities and Futures Commission (SFC) published its Consultation Conclusions on Proposed Risk Management Guidelines for Licensed Persons Dealing in Futures Contracts. This set out regulatory expectations for futures brokers to have a comprehensive risk management framework to manage risks arising from proprietary trading and clients' trading in futures contracts. It is anticipated that more than 300  intermediaries who are licensed for the regulated activity of dealing in futures contracts (RA2) are subject to the influence of the newly established requirements over their existing system, operation process and risk management framework. The Guidelines come into effect on 25 February 2024.

Read our brochure on the right to find out more about these new regulatory requirements, possible transitional arrangements, and how Deloitte can help you adapt to and overcome the upcoming regulatory challenges.