Hong Kong prepares boost to equity derivatives booking
Proposed revamp of large exposure limits would allow netting to reduce capital charges
The Hong Kong Monetary Authority (HKMA) is set to push through new rules allowing banks to net their equity derivatives positions when calculating large exposure limits, in a move likely to boost the city-state’s allure as a derivatives-booking hub.
Under current regulation, in place since 1997, a bank’s exposure to a single counterparty – or counterparties contained in a single corporate group –
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