MAS and ESMA to Cooperate on CCPs in Singapore
The MOU fulfils a pre-condition for ESMA to recognise CCPs in Singapore to provide clearing services to European Union (EU) participants and trading venues. This paves the way for ESMA-recognised CCPs in Singapore to be used by EU market participants to satisfy their mandatory clearing obligations under EU law. EU banks will also enjoy lower capital charges for their clearing exposures to these recognised CCPs. To date, Singapore Exchange Derivatives Clearing Limited, The Central Depository (Pte) Limited and ICE Clear Singapore have applied to ESMA for recognition.