Group 1 - The Hong Kong Securities and Futures Commission (SFC) has initiated a public consultation on the draft amendments to the Securities and Futures (Financial Resources) Rules to implement capital requirements for licensed corporations engaged in over-the-counter (OTC) derivatives activities, aligning with international standards [1] - The proposed capital requirements for OTC derivatives have been adjusted based on recent modifications to Hong Kong's Banking (Capital) Rules and the Basel Framework, with significant reductions for capital requirements applicable to dealers and brokers [1] - The SFC aims to simplify the transfer pricing treatment for licensed corporations, reflecting feedback collected during the 2017 consultation [1] Group 2 - To support the business development and diversification of licensed corporations, the SFC suggests multiple amendments to the Financial Resources Rules, facilitating trading of mainland China and emerging market stocks, commodities, and carbon products, as well as digital asset futures and options on licensed virtual asset trading platforms [1] - The SFC proposes to exempt capital requirements for central clearing of repurchase transactions to promote central clearing in Hong Kong and enhance the development of the inter-dealer repo market [1] - The SFC emphasizes that aligning OTC derivatives capital requirements with global standards is crucial for reinforcing Hong Kong's status as an international financial center, believing that these forward-looking and inclusive proposals will facilitate innovation and support the ongoing development of offshore RMB, fixed income, foreign exchange, and commodity markets, as well as the digital asset market [2]

Core Insights - The forum focused on how derivative tools can support the stable operation of the real economy amidst new international trade dynamics [1] - Experts discussed the significant role of the derivatives market in serving the real economy and the need for innovative risk management solutions [2] Group 1: Derivative Market Insights - Professor Li Zhengqiang emphasized the importance of the derivatives market in supporting high-quality economic development and the legal requirements for its functionality [2] - The chairman of Hainan International Clearing House, Feng Bo, highlighted the rapid growth of the OTC derivatives market, with over 230 members and a cumulative clearing scale of nearly 200 million tons, valued at approximately 4 billion yuan, showing a growth rate exceeding 200% [3] - The introduction of iron ore swaps by Hainan International Clearing House has gained traction as a risk management tool, with over 50 million tons cleared in just over a month [4] Group 2: Challenges and Opportunities - The current environment has increased risks in the bulk commodity sector, making it difficult for enterprises to maintain stable operations and manage profits effectively [3] - The forward market faces significant issues, particularly regarding reliance on corporate credit and the lack of a systematic risk prevention framework, which can lead to widespread impacts in case of defaults [5] - Hainan International Clearing House aims to continuously develop new OTC derivative tools to meet the real needs of enterprises and enhance service capabilities [5][6]