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

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8187