Hong Kong's Securities & Futures (Amendment) Bill 2013 was gazetted Friday, and will be presented to the Legislative Council for the first reading on July 10.

The bill aims to provide a regulatory framework for the over- the-counter derivative market in Hong Kong, and would improve financial market regulation, the city's Secretary for Financial Services & the Treasury K C Chan said.

"It will enable Hong Kong to put in place an appropriate and effective regime which meets the requirements of the Group of Twenty (G20) and is in line with developments in other international financial centers," he said.

The bill includes the introduction of mandatory reporting, clearing and trading obligations in line with G20 commitments.

It will provide for regulating and overseeing key players in the over-the-counter derivative market, introducing two new regulated activities, to cover dealers', advisers' and clearing agents' activities.

Asset management and automated trading services provisions will also be expanded to cover over-the-counter derivative portfolios and transactions.

The bill will also provide for regulating systematically important participants who are not licensed or registered with either the Monetary Authority or the Securities & Futures Commission, but whose positions or transactions in the over-the- counter derivative market are significant enough to raise concerns of potential systemic risks.

It will also incorporate other amendments to the Securities & Futures Ordinance and the Organized & Serious Crimes Ordinance to recoup illegal gains through market misconduct.

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