Hong Kong Regulator Revises Fees Plan for Reporting via HKTR Trade Repository

The current fee plan consists of a monthly fee of HK$4.5 per transaction with an annual cap of HK$1.5 million.

The Hong Kong Monetary Authority (HKMA) today announced that the OTC derivatives trade repository (HKTR) system will remove the fees cap per reporting entity per annum effective from 1 July 2017. The maximum annual fees payable has been increased in 2015 to HK$1.5 million ($193,400) per reporting entity from a previous HK$1 million.

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The move is the latest effort to secure more funding from HKTR participants as the trade repository seeks to recover the operating costs for providing day-to-day reporting services. According to the HKMA’s announcement, the island’s regulator has absorbed the substantial capital investments required for developing the HKTR systems and linkage.

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Under HKMA rules, trade repository members using the reporting service are subject to transaction charge based on the usage of the HKTR system. The current fee plan consists of a monthly fee of HK$4.5 per transaction reported to the HKMA that is outstanding on the last business day of the month, with an annual cap of HK$1.5 million per reporting entity. HKMA notes that the fee of HK$4.5 per outstanding transaction at each month end will remain unchanged.

Explaining the new scheme, an HKMA statement said: “In a recent review by the HKMA on the operating costs of the HKTR, it was noted that the recurrent costs for ongoing maintenance and system enhancements for meeting the evolving regulatory reporting requirements, international reporting standards and technology advancements and increasing support to the industry have been increasing significantly during the past years. “

 

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