SINGAPORE (Apr 19) The Monetary Authority of Singapore (MAS) has signed a Memorandum of Understanding (MOU) with the European Union’s (EU) securities markets regulator, completing the process to allow the use of Singapore’s financial benchmarks in the EU.
The MOU was signed between MAS and the European Securities and Markets Authority (ESMA) on April 17.
Under the MOU, ESMA and MAS will share information and supervisory activities on Singapore-regulated financial benchmarks.
This comes after the European Commission’s equivalence decision recognising Singapore’s regulatory framework on financial benchmarks as equivalent to the requirements under the EU’s Benchmarks Regulation.
The MOU and the equivalence decision will allow financial institutions in the EU to continue using both the Singapore Interbank Offered Rate (SIBOR) and the Singapore Dollar Swap Offer Rate (SOR) as reference rates in their contracts.
The SIBOR and SOR are financial benchmarks regulated in Singapore.
“This MOU is testament to the close working partnership between MAS and our EU counterparts,” says Ong Chong Tee, deputy managing director of financial supervision at MAS.
“The EU’s equivalence decision affirms the robustness of Singapore’s regulatory framework on financial benchmarks. This will promote greater cross-border connectivity between our respective financial markets to the benefit of both regions,” he adds.
“The finalisation of the MOU with MAS is an important step towards the completion of the EU’s third country regime for benchmarks. Regulators around the world are committed to the accuracy and reliability of key global benchmarks and this MOU will facilitate the achievement of these objectives,” says ESMA chair Steven Maijoor.
