Published On: Thu, May 24th, 2012

MAS Issues Response to Feedback on Proposed Regulation of Derivatives Market in Singapore and Consultation Paper

The Monetary Authority of Singapore (MAS) has issued its response to feedback (Response to Feedback) received on the proposals in the Consultation Paper on the regulation of over-the-counter (OTC) derivatives market in Singapore, which was published on 13 February 2012. (MAS Reviews Regulation of the Derivatives Markets in Singapore).

2 MAS received extensive feedback from consumers and the industry, which we have carefully considered and reviewed. MAS thanks all respondents for their useful comments. In view of the broad ranging proposals raised in the consultation, MAS will release our response to feedback in phases. The first phase addresses feedback received on:
(i) Extending the current regulatory regime for clearing facilities to OTC derivatives;
(ii) Introducing a new regulatory regime for trade repositories.

3 Most respondents were supportive of MAS’ proposal to extend the “clearing facility” definition to derivatives contracts and the introduction of a new authorisation regime for clearing facilities and trade repositories. Some also highlighted the importance of protecting customers’ money and assets handled by a clearing facility, while others had some concerns over confidentiality of information reported to trade repositories. MAS agrees that both are important issues to be addressed. We expect trade repositories to maintain high standards of data integrity and confidentiality, and will establish an appropriate framework for regional and global regulators to request trade repository data based on internationally agreed principles. MAS will proceed to implement all the proposals pertaining to the clearing facility and trade repository regimes.

Consultation on Draft Amendments to the Securities and Futures Act on Proposed Regulation of OTC Derivatives

4 To effect the policy proposals set out in the public consultation on the regulation of OTC derivatives and MAS’ corresponding response to feedback received, MAS has issued a consultation paper on the proposed legislative amendments to the Securities and Futures Act (SFA) and the Financial Advisers Act FAA). The consultation papers can be found on MAS’ website at:
(i) Consultation Paper on Proposed Amendments to the Securities and Futures Act on Regulation of OTC Derivatives;
(ii) Consultation Paper on Proposed Amendments to the Securities and Futures Act and the Financial Advisers Act.

5 MAS invites interested parties to give their views and comments on the two consultation papers. The consultation period for both consultation papers will end on 22 Jun 2012.

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