Featured Product

    MAS Consults on Regulatory Approach for Payment Token Derivatives

    November 20, 2019

    MAS published a consultation paper on its regulatory approach under the Securities and Futures Act (SFA) for derivatives contracts that reference payment tokens as underlying assets (Payment Token Derivatives). To reflect the intended regulatory scope of Payment Token Derivatives under the SFA (discussed in Section 3 of the consultation paper), MAS is proposing to amend the Securities and Futures (Prescribed Underlying Thing) Regulations 2018. Annex B contains the text for amendments being proposed under the SFA. The consultation closes on December 20, 2019.

    MAS has received queries from industry participants about whether Payment Token Derivatives, like those referencing Bitcoin and Ether, fall within the regulatory scope of SFA. MAS has also received indications of interest for Payment Token Derivatives regulated under the SFA to be made available to investors in Singapore. In calibrating the regulatory response, MAS intends to adopt a balanced view that seeks to allow innovation to co-exist in a regulatory environment with high standards. The consultation paper sets out the views of MAS on the appropriate regulatory approach for Payment Token Derivatives under the SFA.

    The trading of the most popular digital tokens has largely been on unregulated markets. There has been interest from international institutional investors for a regulated alternative that could mitigate some of the concerns. Such regulated alternatives have recently emerged. In particular, Bitcoin futures have been listed and are traded on the U.S. futures exchanges. A well-regulated market for derivatives—particularly one anchored by institutional investors with sophisticated risk management and investment strategies—can serve as a more reliable reference of value for the underlying asset. 

     

    Comment Due Date: December 20, 2019

    Keywords: Asia Pacific, Singapore, Banking, Securities, Payment Token Derivatives, SFA, Securities and Futures Regulation, Derivatives, MAS

    Featured Experts
    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 7307