The Hong Kong Monetary Authority and the HK Securities and Futures Commission solicited comment on a proposal to exclude delta one warrants from its definition of over-the-counter product and thus exclude it from mandatory reporting obligations. (Delta one warrants are call warrants with a zero or near-zero strike price that trade like the underlying asset until the exercise date. They enable investors to have synthetic exposure to assets in closed markets or markets where access is difficult.) SFC stated its belief that delta one warrants should be excluded from the OTC definition because they are not leveraged and don’t have the same types of risk as OTC products. Comments will be accepted through May 26.