SFC consults on extending investor identification regime to exchange-traded derivatives in Hong Kong

On September 22, 2025, the Securities and Futures Commission (SFC) launched a consultation on the proposed investor identification regime for the exchange-traded derivatives market (HKIDR-DM) to enhance the integrity and sustainable development of Hong Kong’s capital markets. Building on the successful implementation of a similar regime for the securities market since March 2023, the HKIDR-DM will require licensed corporations and registered institutions to submit clients’ names and identity information to a centralized data repository for on-exchange orders involving futures and options traded through the Hong Kong Futures Exchange Limited. Mr. Rico Leung, the SFC’s Executive Director of Supervision of Markets, highlighted that this initiative aims to improve the detection of irregularities and bolster investor confidence while minimizing operational burdens on the industry. The consultation period will last for three months, inviting feedback until December 22, 2025, with the regime expected to be implemented in the first quarter of 2028. Compliance with the Personal Data (Privacy) Ordinance will be mandatory, requiring entities to obtain client consent before collecting and sharing information. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR151