Regulator Proposes Rules For Clearing, Reporting Of OTC Derivatives

On August 3, 2012, the Monetary Authority of Singapore (the “MAS”) released the “Consultation Paper II on Proposed Amendments to the Securities and Futures Act on Regulation of OTC Derivatives” (“Consultation Paper II”) to seek comments on draft legislation setting out the basic framework for mandating the central clearing and reporting of over-the-counter (“OTC”) derivatives.

The consultation period for Consultation Paper II ended August 31, 2012. Following from this, further MAS public consultations on details of implementation of the clearing and reporting requirements are expected.

Background

In February 2012, the MAS released two consultation papers (the “Policy Consultation Papers”) outlining ...