.jpg)
The International Swaps and Derivatives Association, Inc. (ISDA), on behalf of 20 industry participants, submitted a letter today to the Monetary Authority of Singapore (MAS) to drive trade reporting of over-the-counter (OTC) derivatives in Singapore ahead of the mandatory reporting timeline of April 1, 2014[1].
As key participants in the OTC derivatives sector in Singapore, the Signatories to the letter, in consultation with MAS, commit to begin trade reporting of OTC derivatives by February 3, 2014 for standardised interest rate and credit derivatives transactions. This initiative supports MAS’ efforts to meet the G20 objective of strengthening regulatory oversight of the OTC derivatives through trade reporting.
“Trade reporting gives regulators a powerful oversight tool and addresses concerns about the buildup of systemic risk in OTC markets. From experience, the biggest challenge with trade reporting is the required infrastructure build out. Both the industry and MAS should be commended for working together to agree on deliverables and an achievable implementation timeline,” said Robert Pickel, ISDA Chief Executive Officer.
Ravi Menon, Managing Director, MAS said, “Reporting of trades to licensed trade repositories is a key plank of global reforms to strengthen oversight of OTC derivatives markets. MAS welcomes the initiative on the part of ISDA and the signatory banks to commence trade reporting of OTC interest rate and credit derivatives in Singapore ahead of the mandatory timeline. This move will enhance transparency, build confidence, and contribute to more effective functioning of our derivatives market.”
The Signatories of the letter are: Bank of America NA (Singapore branch), Bank Morgan Stanley AG (Singapore branch), Barclays Bank PLC (Singapore branch), BNP Paribas (Singapore branch), Citibank NA (Singapore branch), Credit Agricole Corporate and Investment Bank (Singapore branch), Credit Suisse AG (Singapore branch), DBS Bank Ltd (Singapore Head Office), Deutsche Bank AG (Singapore branch), J.P. Morgan Chase Bank NA (Singapore branch), Nomura Singapore Limited, Oversea-Chinese Banking Corporation Limited (Singapore Head Office), Societe Generale (Singapore branch), Standard Chartered Bank (Singapore branch), Standard Chartered Bank (Singapore) Limited, The HongKong and Shanghai Banking Corporation Limited (Singapore branch), The Royal Bank of Scotland PLC (Singapore branch), UBS AG (Singapore branch), United Overseas Bank Limited (Singapore Head Office) and Wells Fargo Bank, National Association (Singapore branch).
A copy of the letter is available on the Regions/Asia-Pacific section of ISDA’s website.
[1] On 30 October 2013, MAS published its response to feedback received from the 26 June 2013 consultation paper and issued the finalised Regulations, which took effect on 31 October 2013.
