Over-the-counter (‘OTC”) derivatives cover the followings:
Any interest rate derivatives contracts (e.g. interest rate swaps) Any credit derivatives contracts (e.g. credit derivatives swaps or index) Any foreign exchange derivatives contracts (e.g. forwards, swaps, options, non- deliverable forwards (NDF), non-deliverable options (NDO), accumulator/ decumulator (ACDC)) Any commodity derivatives contracts (e.g. ACDC, pivots, forwards, options) Any equity derivatives contracts (e.g. options, ACDC)
Options may consist of vanilla options or exotic options such as single/double options.
The following are not considered as OTC derivatives under HKMA rules:
Dual currency investments (DCI), dual currency deposits (DCD) and dual currency deposit notes (DCN) fall under the definition of structured deposits rather than derivatives contracts. Structured products or notes, FX spots, securitised products and certificates. The Bank is not authorized to trade exchange-traded derivatives, i.e. futures and options.