Featured Product

    MAS Announces Key Initiatives to Support Adoption of SORA

    August 05, 2020

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS. These initiatives complement the industry-led transition roadmap, set out by the Steering Committee for SOR Transition to SORA (SC-STS), to develop vibrant and robust SORA markets. Given the growing importance of SORA as a key interest rate benchmark in SGD financial markets, these initiatives aim to catalyze greater activity in SORA markets, safeguard integrity of the benchmark, and enhance market confidence in SORA.

    MAS announced the following initiatives with respect to SORA: 

    • MAS will issue SORA-based floating rate notes on a monthly basis, starting from August 21, 2020. This will broaden MAS’ suite of money market instruments used to manage banking system liquidity. It will also facilitate the adoption of SORA as a floating rate benchmark, provide a pricing reference for SORA cash products , and spur hedging activities through the SORA derivatives market. 
    • MAS will enhance transparency and data availability on SORA. MAS has already published the key features and calculation methodology for SORA. MAS will also publish, on a daily basis, the key statistics involving SORA; the Compounded SORA rates for 1-month, 3-monthm and 6-month tenors; and a SORA Index that will facilitate calculation of Compounded SORA over specified periods. The Compounded SORA rates and SORA Index will provide market participants with a standardized and transparent basis to derive rates for given tenors, which can be easily referenced in new SORA products.
    • MAS prescribed SORA as a financial benchmark under the Securities and Futures Act. This will ensure that regulatory and enforcement powers, including criminal and civil actions, can be taken against any market misconduct related to SORA. Prescribing SORA as a financial benchmark under the Securities and Futures Act will safeguard the integrity and robustness of SORA, given its growing role as a key interest rate benchmark for SGD financial markets.
    • MAS issued a statement of compliance with the IOSCO principles for financial benchmarks for SORA. This follows recent enhancements to the methodology of SORA to broaden its representativeness. Compliance with IOSCO principles means that the administration of SORA meets international best practices for administration of benchmarks, thus potentially generating broader market confidence in the use of SORA by both domestic and international market participants.

    Keywords: Asia Pacific, Singapore, Banking, Securities, SORA, Interest Rate Benchmarks, Benchmark Reforms, IBOR Reform, Derivatives, MAS

    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7311