ESMA and MAS Sign MOU on Singapore’s Financial Benchmarks

ESMA, the EU’s securities markets regulator, has signed an agreement with the Monetary Authority of Singapore (MAS) completing the process to allow the use of Singapore’s financial benchmarks in the EU. Under the MOU, 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 agreement 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.