Pursuant to a Memorandum of Understanding (“MOU”) which the Monetary Authority of Singapore (the “MAS”) and the European Securities and Markets Authority (the “ESMA”) concluded on 9 March 2015, European Union (“EU”) market participants may turn to clearing services provided by ESMA-recognised Central Counterparties (“CCPs”) in Singapore to comply with mandatory clearing obligations under EU law. EU banks will also enjoy lower capital charges for their clearing exposures to these recognised CCPs.

The MOU aims to establish cooperation arrangements regarding CCPs in Singapore that have applied for recognition under the European Markets Infrastructure Regulation. So far, Singapore Exchange Derivatives Clearing Limited, The Central Depository (Pte) Limited and ICE Clear Singapore have applied for ESMA recognition.

Reference material

Please click here to view the media release which is available on the MAS website www.mas.gov.sg.