B593 Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) (Amendment) Rules 2016 Contents Rule Page 1. Commencement...B599 2. Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules amended...b599 3. Rule 2 amended (interpretation)...b599 4. Rule 2A added...b603 2A. Meaning of transaction information...b603 5. Rule 3 amended (when prescribed person to be regarded as exempt person)...b605 6. Rule 7 amended (transactions that are specified OTC derivative transactions for purposes of reporting obligation)...b609 7. Rule 8 amended (transactions that are specified OTC derivative transactions for purposes of record keeping obligation)...b611 8. Rule 10 amended (reporting by licensed corporations)...b611
B595 Rule Page 9. Rule 11 amended (reporting by authorized financial institutions incorporated in Hong Kong)...B613 10. Rule 12 amended (reporting by authorized financial institutions incorporated outside Hong Kong)...B613 11. Rule 13 amended (reporting by approved money brokers)...b615 12. Rule 16 heading amended (reporting obligation applies even if counterparty, or transaction entered into, outside Hong Kong)...B617 13. Rule 19 repealed (interpretation of Division 3)...B617 14. Rule 22 repealed (reporting outstanding transactions and transactions entered into during concession period)...b617 15. Rule 23 amended (reporting outstanding transactions where no concession period)...b617 16. Rule 24 amended (reporting transactions entered into after concession period, or where no concession period)...b619 17. Rule 25 amended (reporting subsequent events)...b619 18. Rules 25A and 25B added...b621 25A. Submitting valuation transaction information...b623 25B. Modified requirements for transactions reported to Monetary Authority under previous Rules...B623 19. Rule 26 amended (submitting counterparty identifying particulars in certain circumstances)...b631
B597 Rule Page 20. Rule 28 heading amended (prescribed persons to keep records even if counterparty, or transaction entered into, or conducted, outside Hong Kong)...B633 21. Rule 29 amended (records to be kept by prescribed persons)...b633 22. Rule 32 amended (reporting and record keeping obligations applicable to authorized financial institutions incorporated in Hong Kong in respect of specified subsidiaries)...b635 23. Rule 33 added...b635 33. Transitional arrangements for specification of subsidiary made before specification day...b635 24. Schedule 1 substituted...b637 Schedule 1 Transaction Information to be Submitted to Monetary Authority...B637
Rule 1 B599 Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) (Amendment) Rules 2016 (Made by the Securities and Futures Commission under sections 101L and 101P of the Securities and Futures Ordinance (Cap. 571) with the consent of the Monetary Authority and after consultation with the Financial Secretary) 1. Commencement These Rules come into operation on 1 July 2017. 2. Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules amended The Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules (L.N. 96 of 2015) are amended as set out in rules 3 to 24. 3. Rule 2 amended (interpretation) (1) Rule 2 the definition of starting day starting day ( ), in relation to a prescribed person, means the later of (a) (b) (c) the specification day; the day on which the person becomes a prescribed person; and if applicable, the day on which the person ceases to be regarded as an exempt person;.
Rule 3 (2) Rule 2, definition of transaction information B601 everything after in relation to a specified OTC derivative transaction, has the meaning given by rule 2A;. (3) Rule 2, Chinese text, definition of the full stop a semicolon. (4) Rule 2 (a) (b) (c) (d) (e) definition of product class; definition of product class specification day; definition of product type; definition of product type specification day; definition of regulated prescribed person the definitions. (5) Rule 2 Add in alphabetical order excluded currency contract ( ) means an OTC derivative product that is a forward contract for the sale or purchase of a currency which (a) is entered into for the purpose of settling a sale or purchase of securities denominated in that currency; and (b) is intended to be settled by the actual delivery of that currency, by the earlier of the following days
Rule 4 4. Rule 2A added B603 (i) the last day of the customary settlement period for the securities referred to in paragraph (a); (ii) the seventh business day after the day on which the forward contract is executed; grace period ( ), in relation to a prescribed person, means the period of 3 months beginning on the starting day; previous Rules ( ) means the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules as in force immediately before the specification day; specification day ( ) means 1 July 2017; valuation transaction information ( ), in relation to a specified OTC derivative transaction, means the information and particulars which are within the category of information and particulars specified in item 11 of Schedule 1, and which satisfy the requirement referred to in paragraph (b)(ii) of the definition of transaction information in rule 2A(1).. After rule 2 Add 2A. Meaning of transaction information (1) In these Rules transaction information ( ), in relation to a specified OTC derivative transaction, means the information and particulars relating to the
Rule 5 B605 transaction (including information and particulars relating to a subsequent event and valuation transaction information), and to the persons involved in the transaction, which (a) must be submitted to the Monetary Authority for complying with the reporting obligation; and (b) are (i) within a category of information and particulars specified in column 2 of Schedule 1; and (ii) required for completing a data field that is specified by the Monetary Authority in accordance with subrule (2) in relation to the class or description of specified OTC derivative transactions to which the transaction belongs. (2) For the purposes of paragraph (b)(ii) of the definition of transaction information in subrule (1), the Monetary Authority may, after consultation with the Commission and by notice published in the Gazette, specify in relation to a class or description of specified OTC derivative transactions, the data fields that must be completed by a prescribed person in relation to a specified OTC derivative transaction for complying with the reporting obligation. (3) A notice published under subrule (2) is not subsidiary legislation.. 5. Rule 3 amended (when prescribed person to be regarded as exempt person) (1) Rule 3(1)
Rule 5 B607 in relation to a specified OTC derivative transaction within a product class. (2) Rule 3(2) after the product class after the. (3) Rule 3(2)(a) everything after outstanding and before to which the prescribed person specified OTC derivative transactions. (4) Rule 3(2)(b) and (c) a specified OTC derivative transaction within the product class any specified OTC derivative transaction. (5) Rule 3 subrule (4) (4) Despite subrule (1), the prescribed persons referred to in subrule (4A) are not eligible to be regarded as exempt persons for the purposes of rule 10(1)(a), 11(1)(a), 12(1)(a) or 13(1)(a) (as applicable).. (6) After rule 3(4) Add
Rule 6 B609 (4A) The prescribed persons are persons that, under the previous Rules (a) reported a specified OTC derivative transaction to the Monetary Authority; (b) under rule 17(1) or 18(1), were taken to have reported a specified OTC derivative transaction to the Monetary Authority; or (c) (7) Rule 3(5) were required to report a specified OTC derivative transaction to the Monetary Authority but had not reported the transaction to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise).. paragraphs (a) and (b) (a) is not eligible to again be regarded as an exempt person; and (b) ceases to be regarded as an exempt person on the day on which the person ceases to satisfy the requirement.. 6. Rule 7 amended (transactions that are specified OTC derivative transactions for purposes of reporting obligation) Rule 7 in a product type (except a transaction in an excluded currency contract).
Rule 7 B611 7. Rule 8 amended (transactions that are specified OTC derivative transactions for purposes of record keeping obligation) Rule 8 in a product type (except a transaction in an excluded currency contract). 8. Rule 10 amended (reporting by licensed corporations) (1) After rule 10(2) Add (2A) The transaction referred to in subrule (1)(b) includes a transaction that is still outstanding on the specification day and which, under the previous Rules (a) was reported to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong; or (b) (2) Rule 10(3) the person was required to report to the Monetary Authority but the person had not reported to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise).. in relation to the specified OTC derivative transaction.
Rule 9 B613 9. Rule 11 amended (reporting by authorized financial institutions incorporated in Hong Kong) (1) After rule 11(2) Add (2A) The transaction referred to in subrule (1)(b) includes a transaction that is still outstanding on the specification day and which, under the previous Rules (a) was reported to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong; or (b) (2) Rule 11(3) the person was required to report to the Monetary Authority but the person had not reported to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise).. in relation to the specified OTC derivative transaction. 10. Rule 12 amended (reporting by authorized financial institutions incorporated outside Hong Kong) (1) After rule 12(2) Add (2A) The transaction referred to in subrule (1)(b) or (c) includes a transaction that is still outstanding on the specification day and which, under the previous Rules
Rule 11 B615 (a) was reported to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong; or (b) (2) Rule 12(3) the person was required to report to the Monetary Authority but the person had not reported to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise).. in relation to the specified OTC derivative transaction. 11. Rule 13 amended (reporting by approved money brokers) (1) After rule 13(2) Add (2A) The transaction referred to in subrule (1)(b) includes a transaction that is still outstanding on the specification day and which, under the previous Rules (a) was reported to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong; or (b) the person was required to report to the Monetary Authority but the person had not reported to the Monetary Authority before the specification day (whether because the time for reporting was not reached before the specification day, or otherwise)..
Rule 12 (2) Rule 13(3) B617 in relation to the specified OTC derivative transaction. 12. Rule 16 heading amended (reporting obligation applies even if counterparty, or transaction entered into, outside Hong Kong) Rule 16, heading everything after counterparty is, or transaction was entered into, outside Hong Kong. 13. Rule 19 repealed (interpretation of Division 3) Rule 19 the rule. 14. Rule 22 repealed (reporting outstanding transactions and transactions entered into during concession period) Rule 22 the rule. 15. Rule 23 amended (reporting outstanding transactions where no concession period) (1) Rule 23, heading where no concession period. (2) Rule 23(1)
Rule 16 B619 Subject to subrule (5), a prescribed person referred to in subrule (2) and Subject to subrule (5) and rule 25B, a prescribed person. (3) Rule 23 subrule (2). 16. Rule 24 amended (reporting transactions entered into after concession period, or where no concession period) (1) Rule 24, heading everything after entered into on or after starting day. (2) Rule 24(1) referred to in subrule (2) and. (3) Rule 24 subrule (2). (4) Rule 24(3) everything after specified OTC derivative transaction that is entered into on or after the starting day.. 17. Rule 25 amended (reporting subsequent events) (1) Rule 25(1)
Rule 18 B621 everything after subrules (2) and (3) and before must submit the transaction information and rule 25B, a prescribed person referred to in subrule (1A). (2) After rule 25(1) Add (1A) Subrule (1) applies to a prescribed person that, in relation to a specified OTC derivative transaction (3) Rule 25(2) (a) has submitted the transaction information for the transaction to the Monetary Authority in accordance with rule 23 or 24 (including a prescribed person that has submitted the transaction information for the transaction to the Monetary Authority despite rule 23(5)); or (b) was required to submit the transaction information for the transaction to the Monetary Authority in accordance with rule 23 or 24, but failed to do so.. 22(4) or. 18. Rules 25A and 25B added After rule 25 Add
Rule 18 B623 25A. Submitting valuation transaction information (1) Subject to rule 25B, a prescribed person referred to in subrule (2) must submit the valuation transaction information for a specified OTC derivative transaction to the Monetary Authority for every day on which the transaction is still outstanding, within 2 business days after the day to which the valuation transaction information relates. (2) Subrule (1) applies to a prescribed person that, in relation to a specified OTC derivative transaction (a) has submitted the transaction information for the transaction to the Monetary Authority in accordance with rule 23 or 24 (including a prescribed person that has submitted the transaction information for the transaction to the Monetary Authority despite rule 23(5)); or (b) was required to submit the transaction information for the transaction to the Monetary Authority in accordance with rule 23 or 24, but failed to do so. 25B. Modified requirements for transactions reported to Monetary Authority under previous Rules (1) Rules 23, 25 and 25A apply to a prescribed person in relation to a specified OTC derivative transaction referred to in subrule (2) subject to the modifications specified in subrule (3), (5) or (7) (as applicable). (2) The specified OTC derivative transaction is a transaction (a) that is still outstanding on the specification day; and
Rule 18 B625 (b) for which previous transaction information was, before the specification day and under the previous Rules, submitted to the Monetary Authority by the prescribed person or by the affiliate of the person on whose behalf the person conducted the transaction in Hong Kong. (3) If, on the specification day, the transaction has a maturity day that is before 1 July 2018, subject to subrule (7) (a) rule 23(1) applies to the prescribed person in relation to the transaction as if it required the person to submit the previous transaction information to the Monetary Authority on the specification day; (b) rule 25(1) (i) (ii) is to be construed in relation to the prescribed person as if it applied to a prescribed person that has submitted the previous transaction information for the transaction to the Monetary Authority on the specification day; and applies until the maturity day to the prescribed person in relation to a subsequent event that occurs on or after the specification day as if the transaction information required to be submitted to the Monetary Authority for the subsequent event is the previous transaction information;
Rule 18 B627 (c) rule 25A(1) is to be construed in relation to the prescribed person as if it applied to a prescribed person that has submitted the previous transaction information for the transaction to the Monetary Authority on the specification day. (4) For the purposes of subrule (3)(a), (b)(i) and (c), the prescribed person is taken to have submitted the previous transaction information referred to in subrule (2)(b) to the Monetary Authority on the specification day. (5) If, on the specification day, the transaction has a maturity day that is on or after 1 July 2018 (a) rule 23(1) applies to the prescribed person in relation to the transaction as if it required the person to submit to the Monetary Authority (i) on the specification day, the previous transaction information; and (ii) by no later than the last day of the grace period, the additional transaction information as at a day (reporting day) which is not earlier than 2 business days before the day on which the additional transaction information is submitted, reflecting the net effect of all subsequent events that have occurred since the transaction was entered into; (b) rule 25(1) (i) is to be construed in relation to the prescribed person as if it applied to a prescribed person that has submitted the previous transaction information for the
Rule 18 (ii) B629 transaction to the Monetary Authority on the specification day; and applies until the reporting day to the prescribed person in relation to a subsequent event that occurs on or after the specification day as if the transaction information required to be submitted to the Monetary Authority for the subsequent event is the previous transaction information; (c) rule 25A(1) is to be construed in relation to the prescribed person as if it applied to a prescribed person that has submitted the previous transaction information for the transaction to the Monetary Authority on the specification day. (6) For the purposes of subrule (5)(a)(i), (b)(i) and (c), the prescribed person is taken to have submitted the previous transaction information referred to in subrule (2)(b) to the Monetary Authority on the specification day. (7) If, in relation to a transaction referred to in subrule (3), on or after the specification day and before 1 July 2018, a subsequent event occurs that has the effect of extending the maturity day of the transaction to a day that is on or after 1 July 2018 (extending event), then (a) on and from the day on which the extending event occurs, subrule (3) ceases to apply to the prescribed person in relation to the transaction and, subject to paragraph (b), subrule (5) applies to the person in relation to the transaction; and
Rule 19 (b) (8) In this rule B631 if the extending event occurs on or after the last day of the grace period, subrule (5)(a)(ii) is to be construed as if the reference to the last day of the grace period is a reference to a day that is no later than 2 business days after the day on which the extending event occurs. additional transaction information ( ) means transaction information that is not previous transaction information; previous transaction information ( ) means information and particulars that constituted the transaction information within the meaning of the previous Rules.. 19. Rule 26 amended (submitting counterparty identifying particulars in certain circumstances) (1) Rule 26(1) 22,. (2) Rule 26(1) 22(5) or. (3) Rule 26(1)(b)(i) everything after entered into before 10 January 2016;. (4) Rule 26(6)
Rule 20 B633 the definition of counterparty identifying particulars counterparty identifying particulars ( ) means the following transaction information (a) the name of a counterparty to a specified OTC derivative transaction; (b) any identifying reference of, or assigned to, a counterparty to a specified OTC derivative transaction, and the type of the identifying reference;. 20. Rule 28 heading amended (prescribed persons to keep records even if counterparty, or transaction entered into, or conducted, outside Hong Kong) Rule 28, heading everything after counterparty is, or transaction was entered into or conducted, outside Hong Kong. 21. Rule 29 amended (records to be kept by prescribed persons) (1) Rule 29(1)(c) exempt person in relation to the transaction exempt person. (2) Rule 29(1)(e)
Rule 22 22(5) or. (3) Rule 29 subrule (2). B635 22. Rule 32 amended (reporting and record keeping obligations applicable to authorized financial institutions incorporated in Hong Kong in respect of specified subsidiaries) Rule 32(5) paragraphs (a) and (b) (a) 23. Rule 33 added a reference to a prescribed person, or to a prescribed person that is an authorized financial institution incorporated in Hong Kong (other than an institution that is an exempt person), is to be construed as a reference to a specified subsidiary; (b) a reference to the starting day in relation to a prescribed person is to be construed, in relation to a specified subsidiary, as a reference to the effective day; and. After rule 32 Add 33. Transitional arrangements for specification of subsidiary made before specification day (1) A specification of a subsidiary by the Monetary Authority under section 101B(5) of the Ordinance for the purposes of section 101B(3) of the Ordinance, that was in force immediately before the specification day continues to have effect on and after the
Rule 24 B637 specification day as if the specification was made on the specification day. (2) A specification of a subsidiary by the Monetary Authority under section 101E(5) of the Ordinance for the purposes of section 101E(3) of the Ordinance, that was in force immediately before the specification day continues to have effect on and after the specification day as if the specification was made on the specification day.. 24. Schedule 1 substituted Schedule 1 the Schedule Schedule 1 [rr. 2 & 2A] Transaction Information to be Submitted to Monetary Authority Column 1 Column 2 Item Category of information and particulars relating to specified OTC derivative transaction, and to persons involved in transaction 1. Information and particulars relating to the Monetary Authority s administration of the reporting of the transaction, including information and particulars identifying
Rule 24 Column 1 Column 2 B639 Item Category of information and particulars relating to specified OTC derivative transaction, and to persons involved in transaction (a) the nature of the report; (b) the person submitting the report; (c) the person that is required to comply with the reporting obligation; and (d) if the person that is required to comply with the reporting obligation is regarded as having conducted the transaction in Hong Kong on behalf of an affiliate of the person, the affiliate. 2. Information and particulars relating to the class or type of product to which the transaction belongs. 3. Days and periods relating to the transaction, including (a) the day on which the transaction was entered into or on which a subsequent event is agreed; (b) the day on which the transaction or a subsequent event becomes effective; (c) the day on which the transaction matures or terminates; (d) dates or periods relating to a feature of the class or type of product to which the transaction belongs; and
Rule 24 Column 1 Column 2 B641 Item Category of information and particulars relating to specified OTC derivative transaction, and to persons involved in transaction (e) dates or periods relating to the reporting of a transaction that is outstanding as at a particular time. 4. Information and particulars relating to the counterparties to the transaction, including names, places of incorporation or residence, identifying references, and rights and obligations arising under, or relating to, the transaction. 5. Information and particulars relating to pricing of the transaction (other than valuation transaction information), including (a) notional amounts and schedules; (b) reference and settlement currencies; (c) agreed prices, rates or indices; (d) settlement details; and (e) other features or details specific to the class or type of product to which the transaction belongs that may affect the value of the transaction.
Rule 24 Column 1 Column 2 B643 Item Category of information and particulars relating to specified OTC derivative transaction, and to persons involved in transaction 6. Information and particulars relating to the confirmation of the transaction, including the platform through which, and the manner in which, the transaction was confirmed and any identifying reference assigned to the transaction by the confirmation platform. 7. Information and particulars relating to the execution of the transaction, including (a) the platform through which, and the manner in which, the transaction was executed; (b) any identifying reference assigned to the transaction by the execution platform; (c) the day on which, and the time at which, the transaction was executed; and (d) any agent involved in the execution of the transaction.
Rule 24 Column 1 Column 2 B645 Item Category of information and particulars relating to specified OTC derivative transaction, and to persons involved in transaction 8. Information and particulars relating to the clearing of the transaction, including (a) whether the transaction was, or is intended to be, cleared through a central counterparty; (b) if applicable, the central counterparty through which the transaction was, or is intended to be, cleared; (c) identifying references assigned to the original transaction before it is cleared, and the 2 new transactions resulting from the clearing process; (d) the client clearing services provider (if any) involved in, or intended to be involved in, clearing the transaction; and (e) whether or not the clearing obligation applies to the transaction. 9. Information and particulars relating to whether and how the transaction arises from, or is amended as a result of, a portfolio compression exercise.
Rule 24 Column 1 Column 2 B647 Item Category of information and particulars relating to specified OTC derivative transaction, and to persons involved in transaction 10. Particulars of any identifying reference assigned to the transaction (being types of references that may be accepted by the Monetary Authority, as specified by the Monetary Authority in the directions and instructions published under rule 21(2)). 11. Information and particulars relating to the valuation of the transaction, including (a) the basis of the valuation; (b) the day on which, and the time at which, the valuation was calculated; (c) the value of the transaction; and (d) the currency in which the value is denominated. 12. Information and particulars relating to a subsequent event, including (a) the day on which the event occurred; (b) the type of the event; and (c) the changes resulting from the event to information or particulars submitted to the Monetary Authority.
Rule 24 Column 1 Column 2 B649 Item Category of information and particulars relating to specified OTC derivative transaction, and to persons involved in transaction 13. Other information and particulars relating to the transaction, or to the persons involved in the transaction.. 2 February 2016 Ashley ALDER Chief Executive Officer, Securities and Futures Commission
Explanatory Note Paragraph 1 Explanatory Note B651 The main object of these Rules is to amend the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules (L.N. 96 of 2015) (Reporting Rules) by expanding the scope of OTC derivative transactions to which the reporting and record keeping obligations apply and information relating to the transactions that must be submitted to the Monetary Authority (MA), and by providing for transitional arrangements relating to transactions already reported to the MA under the Reporting Rules when these Rules commence (specification day). 2. Rule 3 amends rule 2 of the Reporting Rules by amending, repealing and adding various definitions used in the Reporting Rules. 3. Rule 4 adds a new rule 2A to the Reporting Rules, which sets out the meaning of transaction information and expands the scope of the information and particulars relating to a transaction that must be submitted to the MA for complying with the reporting obligation. 4. Rule 5 amends rule 3 of the Reporting Rules by removing the product class basis for exempt person status. Consequential amendments as a result of this removal are made to rules 2 (definitions of starting day and regulated prescribed person), 10(3), 11(3), 12(3), 13(3), 29(1)(c) and 32(5) of the Reporting Rules. 5. Rules 6 and 7 respectively amend rules 7 and 8 of the Reporting Rules to apply the reporting and record keeping obligations to all OTC derivative transactions, except
Explanatory Note Paragraph 6 B653 transactions in excluded currency contracts. Consequential amendments as a result of this expansion are made to rule 2 (addition of definition of excluded currency contract and repeal of various definitions relating to product classes and product types), rule 3 (exempt person status), rules 19, 22, 23 and 24 (repeal of references to concession period) of, and Schedule 1 to, the Reporting Rules. 6. Rules 8(1), 9(1), 10(1) and 11(1) respectively add a new subrule (2A) to rules 10, 11, 12 and 13 of the Reporting Rules in order to apply the reporting obligation to certain transactions which were conducted by prescribed persons on behalf of affiliates and reported to the MA before the specification day. 7. Rule 13 repeals rule 19 of the Reporting Rules that contains the definitions of (a) (b) grace period (rule 3 adds a new definition for this term to rule 2 of the Reporting Rules); and concession period (rules 14, 15(1) and 16(1) remove references to this term from the Reporting Rules). 8. Rules 15(2) and 17(1) respectively amend rules 23 and 25 of the Reporting Rules to make them subject to certain modified requirements set out in a new rule 25B of the Reporting Rules relating to transactions reported to the MA before the specification day. 9. Rule 17(2) amends rule 25 of the Reporting Rules to clarify the prescribed persons that are required to report subsequent events. 10. Rule 18 adds to the Reporting Rules
Explanatory Note Paragraph 11 (a) B655 a new rule 25A, which requires prescribed persons to submit valuation transaction information for a specified OTC derivative transaction on a daily basis; and (b) a new rule 25B, which sets out certain modified requirements for reporting expanded transaction information for transactions that were reported to the MA before the specification day. 11. Rule 19 amends rule 26 of the Reporting Rules, to clarify the meaning of the day specified in rule 26(1)(b)(i) of the Reporting Rules and to amend the definition of counterparty identifying particulars consequential to the repeal and substitution of Schedule 1 to the Reporting Rules. 12. Rule 23 adds a new rule 33 to the Reporting Rules, which sets out transitional arrangements relating to certain subsidiaries of authorized financial institutions incorporated in Hong Kong that were specified by the MA under sections 101B(5) or 101E(5) of the Securities and Futures Ordinance (Cap. 571) before the specification day. 13. Rule 24 repeals and substitutes Schedule 1 to the Reporting Rules with certain categories of information and particulars relating to transactions, for the purposes of the new rule 2A of the Reporting Rules.