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]