Global Trustee and Fiduciary Services Bite-Sized Issue 5 2025

13 QUICK LINKS AIFMD (UK) CRYPTOASSETS DATA EMIR FINTECH FSB IOSCO MARKET ABUSE REGULATION MICA MIFID II/MIFIR SUSTAINABLE FINANCE/ ESG ASIA PACIFIC AUSTRALIA EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 5 | 2025 ASIA PACIFIC SFC Proceeds with Position Limit Increases for Key Stock Index Derivatives On 30 April 2025, the Securities and Futures Commission (SFC) published consultation conclusions on the proposed increases of position limits for exchange-traded derivatives based on the three major stock indices in Hong Kong. The SFC says that respondents to the consultation which ended on 28 March 2025 have shown strong support for the proposal, noting that the changes will facilitate market liquidity, hedging efficiency and further market growth. The SFC received a total of 25 submissions from both local and overseas market participants, including market makers, asset managers, industry associations and other stakeholders. The SFC states it will now proceed to implement the proposal after considering the feedback, the historical and potential market growth, as well as utilisation of the limits by market participants. To this end, it will amend the Securities and Futures (Contracts Limits and Reportable Positions) Rules, as well as the Guidance Note on Position Limits and Large Open Position Reporting Requirements. Subject to the legislative process, the new position limits are expected to take effect in July 2025. Link to Consultation Conclusions here SFC on Track to Launch Uncertificated Securities Market Regime in Early 2026 On 17 April 2025, the SFC stated that it welcomed the enactment of all necessary legislation to pave the way for the implementation of the uncertificated securities market initiative (USM) in early 2026 subject to market readiness. To help the market better understand and prepare for this new initiative, the SFC says that it has also launched a dedicated USMwebpage to provide a one-stop access to all useful information. The webpage includes a set of frequently asked questions to help listed issuers and investors better understand their rights and obligations under USM. Among the key changes under USM: • Newly listed securities will have to be in paperless form from the time of listing, meaning investors will no longer be able to hold these securities in paper form; and • For existing securities, investors may continue to hold their paper certificates, which will not be invalidated. Meanwhile, specific deadlines will be set for each issuer to take steps to enable investors to hold and transfer the securities in their own names without paper. Thereafter, issuers will no longer be able to issue new paper certificates. The SFC is working with Hong Kong Exchanges and Clearing Limited and the Federation of Share Registrars Limited on a detailed five-year implementation timetable which will cover issuers from Hong Kong, Mainland China, Bermuda and Cayman Islands. Link to SFC Press Release here