The Securities and Futures Commission (SFC) today published conclusions to the consultation on proposed amendments to the Guidelines for the Regulation of Automated Trading Services (ATS) (Note 1).
In light of the respondents’ comments (Note 2), the SFC has made a few changes to the proposed amendments by way of clarification.
The SFC intends to implement the revised ATS Guidelines with effect from the date when mandatory clearing of over-the-counter (OTC) derivative transactions is also implemented. This is expected to be on 1 September 2016 (Note 3).
Central counterparties (CCPs) wishing to provide mandatory clearing services for OTC derivative transactions from that day should ensure that their applications for ATS authorization and CCP designation, with full and complete information and documentation, reach the SFC on or before 29 April 2016.
We welcome applicants to contact the SFC should there be any questions regarding this process.
Notes:
- On 20 November 2015, the SFC released a consultation paper on proposed changes to update the ATS Guidelines. The consultation period ended on 31 December 2015.
- The SFC received 15 written submissions. The respondents generally supported the proposed changes.
- As the commencement of phase 1 mandatory clearing of OTC derivative transactions is now deferred from 1 July 2016 to 1 September 2016 (subject to the legislative process for the relevant subsidiary legislation) the implementation of the revised ATS Guidelines is expected to be deferred to that date as well.