ESMA and MAS sign a MoU on Singapore’s Financial Benchmarks

The European Securities and Markets Authority (ESMA) and the Monetary Authority of Singapore (MAS) signed a Memorandum of Understanding (MoU), finishing the process of allowing the use of Singapore’s financial benchmarks in the European Union. ESMA and MAS agree to share information and supervisory activities on Singapore-regulated financial benchmarks.

The European Commission implemented the equivalence decision recognising Singapore’s regulatory framework on financial benchmarks as equivalent to the requirements under the EU’s Benchmarks Regulation earlier this month. The equivalence decision and the MoU will allow financial institutions in the EU to continue using Singapore Interbank Offered Rates (SIBOR) and the Singapore Dollar Swap Offer Rate (SOR), which are financial benchmarks regulated in Singapore.

ESMA and MAS sign a MoU on Singapore's Financial Benchmarks

Steven Maijoor, ESMA Chair, commented:

Steven Maijoor

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.

Ong Chong Tee, Deputy Managing Director (Financial Supervision) of MAS, noted:

This MoU is testament to the close working partnership between MAS and our EU counterparts. 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.

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