As published on finews.asia, Tuesday 21 April, 2020.
Under the MOU, ESMA and MAS will share information and supervisory activities on Singapore-regulated financial benchmarks.
The Monetary Authority of Singapore (MAS) has signed a memorandum of understanding with the European Securities and Markets Authority (ESMA) to allow the use of Singapore’s financial benchmarks in the EU.
A day before the MOU, the European Commission, the EU's highest decision-making body and executive arm, recognized Singapore’s regulatory framework on financial benchmarks as equivalent to the requirements under the EU’s Benchmarks Regulation. Together, they will allow financial institutions in the EU to continue using, as reference rates in their contracts, both SIBOR and the Singapore Dollar Swap Offer Rate (SOR).
"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," Ong Chong Tee, deputy managing director (financial supervision), MAS, said.