The Hong Kong Securities and Futures Commission published its conclusions regarding a number of proposed enhancements to its position limits and reportable position regime that it proposed in September 2016. (Clickhere for background in the article “HK Derivatives Regulator Proposes to Amend Position Limits Regime to Authorize Higher Excess Levels” in the September 25, 2016 edition of Bridging the Week.) Among other things, the regulator rejected introducing a hedging exemption, saying that its alternative client facilitation excess limit regime is “intended to provide a mechanism for market participants to use exchange-traded futures and options to hedge their relevant business activities.” As part of its updated requirements, SFC will recommend to the HK Legislative Counsel that it be given the authority to raise the cap on excess positions it may approve from 50 percent to 300 percent.