Regulatory Framework for Sustainability-Linked Derivatives: Hong Kong Analysis

Interest in environmental, social and governance (ESG) issues has grown in Asia-Pacific, as companies transition to a green economy and enhance their social responsibility credentials. Sustainability-linked derivatives (SLDs) have emerged as one of the tools available to help firms meet their ESG objectives. However, it is necessary for users to understand how these instruments fit into existing regulatory regimes.

This whitepaper analyzes two categories of SLDs in the context of the derivatives regulatory framework in Hong Kong.

Specifically, it considers:

  • Whether SLDs would be classified as over-the-counter (OTC) derivatives transactions or another type of regulated product, and how they are regulated; and
  • Compliance issues for market participants to consider when executing SLDs.

Documents (1) for Regulatory Framework for Sustainability-Linked Derivatives: Hong Kong Analysis

ISDA Presents Lock-Up Agreement Proposal

ISDA is pleased to present the proposed Lock-Up Agreements and CDS – Proposed Auction Solution. “Lock-Up Agreements” are market-wide arrangements, broadly standardized and predominantly integrated with court sanctioned restructuring or bankruptcy processes. Numerous end users will sign material Lock-Up Agreements...

Key Trends in OTC Derivatives Market H2 2024

The latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics shows a modest increase in notional outstanding during the second half of 2024 compared to the same period in 2023. Notional outstanding for interest rate, foreign...