Singapore to improve price computations of SGS and MAS bills

It wants to guide primary dealers in determining the end-of-day prices.

The Monetary Authority of Singapore (MAS) is proposing to strengthen the process of determining the end-of-day prices of Singapore Government Securities (SGS) and MAS bills in a consultation paper it released.

According to a press release, this is in line with MAS’ broader efforts to enhance the integrity of the processes for setting financial benchmarks.

As of end October 2017, outstanding SGS and MAS Bills amounted to more than $200b.

Part of the proposal aims to enhance the closing prices methodology, improve the governance and controls of the closing prices determination process, guide primary dealers (PD) of their obligations in the closing prices determination process.

The new framework will take reference from the Principles for Financial Benchmarks developed by the International Organization of Securities Commissions.

MAS invites interested parties to submit their comments on the proposed framework by 19 January 2018. A copy of the consultation paper is available on the MAS website.