Hong Kong (HK) has started consultations for regulating its over-the-counter (OTC) derivatives market in step with global markets, Bloomberg reports. Primary suggestions put forward by the Hong Kong Monetary Authority (HKMA) and the city’s Securities and Futures Commission comprise compulsory reporting and central clearing of OTC transactions.

The city’s exchange operator Hong Kong Exchanges and Clearing is establishing a clearinghouse for the transactions and the HKMA will institute a trade repository to collect data on the market. The consultations, due to end November 30, look to limit systemic risk in the light of Lehman Brothers Holdings’ 2008 collapse.

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