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

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8423