The Securities and Futures Commission (SFC) is to propose mandatory monthly reporting of securities firms' over-the-counter (OTC) derivatives positions, according to the watchdog chairman. Anthony Neoh said the commission would issue a consultation paper about OTC reporting at the end of the month. He said the move was in line with the international practice of the Basle Committee and the International Organisation of Securities Commissions, which have issued papers on derivatives disclosure. The proposal would cover all brokers and institutions under the SFC's regulation. All trades booked in Hong Kong and through Hong Kong in overseas centres would need to be reported to the SFC monthly, instead of voluntarily. Mr Neoh said the move would allow the SFC better access to information.
