Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 203

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 203
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 and SBS dealers such as HSBC Bank USA and HSBC Bank plc. Subject to certain exceptions, the margin rules require HSBC Bank USA and HSBC Bank plc to collect and post initial and variation margin for non-cleared swaps and SBS entered into with other swap dealers and certain financial end-users. The prudential regulators’ margin requirements, the parallel margin rules adopted by the CFTC and the SEC and certain non-US regulators, as well as other regulations of OTC derivatives under Title VII, have increased the costs associated with trading OTC derivatives and may adversely affect our business in such products. Dodd-Frank also expands the extra-territorial jurisdiction of US courts over actions brought by the SEC or the US with respect to violations of the anti-fraud provisions in the Securities Act, the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. In addition, regulations which the FSOC, the CFPB or other regulators may adopt could affect the nature of the activities that our FDIC- insured depository institution subsidiaries may conduct, and may impose restrictions and limitations on the conduct of such activities. The implementation of the remaining Dodd-Frank provisions could result in additional costs or limit or restrict the way we conduct our business in the US. EU Regulation and supervision HSBC Continental Europe (‘HBCE’) is the parent company of all HSBC European subsidiaries. In accordance with provisions of the Capital Requirements Directive (‘CRD’), HBCE is an Intermediate Parent Undertaking (‘IPU’) for HSBC's European subgroup, centralising all coordination and requests to the European Central Bank (‘ECB‘) and the EU member states’ national supervisory authorities ,the European Single Resolution Board (‘SRB‘) and the EU member states’ national resolution authorities. In the EU, the package of rules implementing the Basel 3.1 reforms were finalised in 2024. The final version of the amendments to the Capital Requirements Regulation, known as CRR3, was published in June. The CRR3 amends the rules as regards to requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor in accordance with Basel 3.1. The implementation date for the majority of the requirements remains 1 January 2025, with an output floor transitional period of five years. In October 2024, a delegated act postponing the implementation of the market risk rules by one-year until 1 January 2026 was formally adopted.