MAS proposes regulatory framework for financial benchmarks

SIBOR and SOR were under review.

According to a release, the Monetary Authority of Singapore (MAS) announced a proposed regulatory framework for financial benchmarks. The new framework will enhance the integrity of the processes for setting these financial benchmarks.

MAS has also completed its year-long review of the processes relating to banks’ benchmark submissions. Based on its findings, MAS has taken a range of supervisory actions against banks for deficiencies in the governance, risk management, internal controls, and surveillance systems, relating to these processes.

MAS’ review covered the Singapore dollar interest rate benchmarks – the Singapore Interbank Offered Rates (SIBOR) and Swap Offered Rates (SOR) – and the Foreign Exchange spot benchmarks (FX Benchmarks) that are commonly used to settle Non-Deliverable Forward FX contracts, over the period from 2007 to 2011.