MAS signs MOU with EU regulator on financial benchmarks

It allows Singapore’s financial benchmarks to be used in the EU.

The Monetary Authority of Singapore (MAS) and the European Securities Markets Authority (ESMA) have signed a memorandum of understanding that will see Singapore’s financial benchmarks be used in the European Union, the two regulators announced in a joint release. ESMA is the EU’s securities markets regulator.

Under the memorandum, ESMA and MAS will share information and supervisory activities on Singapore-regulated financial benchmarks.

The signing of the MOU follows the European Commission’s equivalence decision recognising Singapore’s regulatory framework on financial benchmarks as equivalent to the requirements under the EU’s Benchmarks Regulation.

The MOU and the equivalence decision 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), which are financial benchmarks regulated in Singapore.