Authority: |
Singapore-Monetary Authority of Singapore
|
Jurisdiction: |
Singapore
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
USD
|
Index: |
LIBOR
|
Product Tenor: |
28 days to 10 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
SGX-DC, CME, LCH
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
Singapore
Exemptions to Mandatory Central Clearing
Exemption to mandatory central clearing include:
1) Entities:
- Banks which do not exceed a maximum threshold of S$20 billion gross notional oustanding derivatives booked in Singapore for each of the last four calendar quarters
- Non-bank financial institutions
2) Contracts:
- Derivatives contracts where either one or both counterparties to the contract book the contract outside of Singapore
- Intragroup transactions
- Trades that results from multilateral portfolio compression, suject to certain conditions
|
Affiliated entities / group entities exemption: |
Yes
View Note
Singapore
Exemptions to Mandatory Central Clearing
Exemption to mandatory central clearing include:
1) Entities:
- Banks which do not exceed a maximum threshold of S$20 billion gross notional oustanding derivatives booked in Singapore for each of the last four calendar quarters
- Non-bank financial institutions
2) Contracts:
- Derivatives contracts where either one or both counterparties to the contract book the contract outside of Singapore
- Intragroup transactions
- Trades that results from multilateral portfolio compression, suject to certain conditions
|
Pre-existing transactions exemption: |
Yes
View Note
Singapore
Exemptions to Mandatory Central Clearing
Exemption to mandatory central clearing include:
1) Entities:
- Banks which do not exceed a maximum threshold of S$20 billion gross notional oustanding derivatives booked in Singapore for each of the last four calendar quarters
- Non-bank financial institutions
2) Contracts:
- Derivatives contracts where either one or both counterparties to the contract book the contract outside of Singapore
- Intragroup transactions
- Trades that results from multilateral portfolio compression, suject to certain conditions
|
Other exemptions, if any: |
Yes
View Note
Singapore
Exemptions to Mandatory Central Clearing
Exemption to mandatory central clearing include:
1) Entities:
- Banks which do not exceed a maximum threshold of S$20 billion gross notional oustanding derivatives booked in Singapore for each of the last four calendar quarters
- Non-bank financial institutions
2) Contracts:
- Derivatives contracts where either one or both counterparties to the contract book the contract outside of Singapore
- Intragroup transactions
- Trades that results from multilateral portfolio compression, suject to certain conditions
|
|
Effective Date: |
Securities and Futures (Clearing of Derivatives Contracts) Regulations issued on 2 May 2018. Commencement of mandatory clearing from 1 Oct 2018.
|
|
Reference: |
View Note
Singapore
Framework for Mandatory Central Clearing
The legislative framework for mandatory central clearing is in place and effective from November 2012. MAS assesses and determines the type of OTC derivatives products that should be subject to mandatory clearing.
In determining whether an OTC derivatives product or class of OTC derivatives contracts should be subject to central clearing requirements, MAS will assess the following:
- the level of systemic risk posed by that derivatives contract or class of derivatives contracts;
- the characteristics and level of standardisation of the contractual terms and operational processes relating to that derivatives contract or class of derivatives contracts;
- the depth and liquidity of the market for that derivatives contract or class of derivatives contracts;
- the availability of fair, reliable and generally accepted pricing sources for that derivatives contract or class of derivatives contracts;
- the international regulatory approach towards that derivatives contract of class of derivatives contracts;
- whether there is any anti-competitive effect associated with that derivatives contract or class of derivatives contracts;
- the availability of approved clearing houses or recognised clearing houses that operate clearing facilities of the clearing of that derivatives contract or class of derivatives contracts.
On 2 May 2018, MAS introduced the Securities and Futures (Clearing of Derivatives Contract) Regulations to implement the mandatory clearing requirement of OTC derivatives. Banks whose gross notional outstanding OTC derivatives exceeding $20 billion will be required to clear their trades in SGD and USD fixed-floating interest rate swaps through CCPs that are regulated by MAS. The regulation will take effect from 1 Oct 2018.
|
|
Last Update of the Regime: |
01 September 2018
|
Authority: |
Singapore-Monetary Authority of Singapore
|
Jurisdiction: |
Singapore
|
Product features |
Product type: |
Fixed-to-floating swap
|
Currency: |
SGD
|
Index: |
SOR
|
Product Tenor: |
28 days to 10 years
|
Optionality: |
No
|
Single Or Dual Currency: |
Single
|
Conditional Notional Amount: |
No
|
Other Product Characteristics: |
|
Eligible CCPs |
Eligible CCPs: |
SGX-DC, CME, LCH
|
Where any of the eligible CCPs listed in the preceding column are not authorised to provide clearing services to all the products in this row, details of these limitations: |
|
Exemptions (Note: The application of the exemptions below may be subject to conditions and restrictions. Please see the relevant notes for details.) |
End-users/ non-financial entities exemption: |
Yes
View Note
Singapore
Exemptions to Mandatory Central Clearing
Exemption to mandatory central clearing include:
1) Entities:
- Banks which do not exceed a maximum threshold of S$20 billion gross notional oustanding derivatives booked in Singapore for each of the last four calendar quarters
- Non-bank financial institutions
2) Contracts:
- Derivatives contracts where either one or both counterparties to the contract book the contract outside of Singapore
- Intragroup transactions
- Trades that results from multilateral portfolio compression, suject to certain conditions
|
Affiliated entities / group entities exemption: |
Yes
View Note
Singapore
Exemptions to Mandatory Central Clearing
Exemption to mandatory central clearing include:
1) Entities:
- Banks which do not exceed a maximum threshold of S$20 billion gross notional oustanding derivatives booked in Singapore for each of the last four calendar quarters
- Non-bank financial institutions
2) Contracts:
- Derivatives contracts where either one or both counterparties to the contract book the contract outside of Singapore
- Intragroup transactions
- Trades that results from multilateral portfolio compression, suject to certain conditions
|
Pre-existing transactions exemption: |
Yes
View Note
Singapore
Exemptions to Mandatory Central Clearing
Exemption to mandatory central clearing include:
1) Entities:
- Banks which do not exceed a maximum threshold of S$20 billion gross notional oustanding derivatives booked in Singapore for each of the last four calendar quarters
- Non-bank financial institutions
2) Contracts:
- Derivatives contracts where either one or both counterparties to the contract book the contract outside of Singapore
- Intragroup transactions
- Trades that results from multilateral portfolio compression, suject to certain conditions
|
Other exemptions, if any: |
Yes
View Note
Singapore
Exemptions to Mandatory Central Clearing
Exemption to mandatory central clearing include:
1) Entities:
- Banks which do not exceed a maximum threshold of S$20 billion gross notional oustanding derivatives booked in Singapore for each of the last four calendar quarters
- Non-bank financial institutions
2) Contracts:
- Derivatives contracts where either one or both counterparties to the contract book the contract outside of Singapore
- Intragroup transactions
- Trades that results from multilateral portfolio compression, suject to certain conditions
|
|
Effective Date: |
Securities and Futures (Clearing of Derivatives Contracts) Regulations issued on 2 May 2018. Commencement of mandatory clearing from 1 Oct 2018.
|
|
Reference: |
View Note
Singapore
Framework for Mandatory Central Clearing
The legislative framework for mandatory central clearing is in place and effective from November 2012. MAS assesses and determines the type of OTC derivatives products that should be subject to mandatory clearing.
In determining whether an OTC derivatives product or class of OTC derivatives contracts should be subject to central clearing requirements, MAS will assess the following:
- the level of systemic risk posed by that derivatives contract or class of derivatives contracts;
- the characteristics and level of standardisation of the contractual terms and operational processes relating to that derivatives contract or class of derivatives contracts;
- the depth and liquidity of the market for that derivatives contract or class of derivatives contracts;
- the availability of fair, reliable and generally accepted pricing sources for that derivatives contract or class of derivatives contracts;
- the international regulatory approach towards that derivatives contract of class of derivatives contracts;
- whether there is any anti-competitive effect associated with that derivatives contract or class of derivatives contracts;
- the availability of approved clearing houses or recognised clearing houses that operate clearing facilities of the clearing of that derivatives contract or class of derivatives contracts.
On 2 May 2018, MAS introduced the Securities and Futures (Clearing of Derivatives Contract) Regulations to implement the mandatory clearing requirement of OTC derivatives. Banks whose gross notional outstanding OTC derivatives exceeding $20 billion will be required to clear their trades in SGD and USD fixed-floating interest rate swaps through CCPs that are regulated by MAS. The regulation will take effect from 1 Oct 2018.
|
|
Last Update of the Regime: |
01 September 2018
|