Hong Kong financial regulators have announced plans to harmonize the reporting regime for over-the-counter (OTC) derivatives, including crypto derivatives, with international standards. The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have released the findings of a joint consultation outlining changes that will bring the city’s regulations in line with European and global practices.
The new rules, which are expected to come into force on September 29, 2025, will mandate the use of unique transaction identifiers (UTIs), unique product identifiers (UPIs) and critical data elements (CDEs) for reporting of over-the-counter derivatives. These changes are intended to facilitate international standardization and harmonization of data elements reported in global OTC derivatives reporting regimes.
Regulators have particularly focused on the emerging area of digital asset derivatives. As reported by the HKMA and SFC,
“As the Digital Token Identifier (DTI) has been proposed as an allowable reportable value in the upcoming CDE Technical Guide Version 4 consultation, we will consider the use of DTI in our reporting requirements .”
The move aligns Hong Kong with European efforts to standardize the identification of digital assets in financial reporting.
Regulators also streamlined the number of mandatory data fields to be “comparable to the EU, US and other jurisdictions in the APAC region”, striking a balance between comprehensive reporting and operational efficiency for market players.
Additionally, Hong Kong will adopt the ISO 20022 XML message standard for reporting OTC derivatives, a move that has received broad support from industry stakeholders. This adoption will ensure consistency with global reporting practices and facilitate cross-border data sharing and analysis.
These changes represent a notable step in Hong Kong’s efforts to maintain its status as a leading international financial center while ensuring regulatory alignment with major cryptocurrency derivatives and digital assets markets.
