For decision makers in every corner of Asia’s financial markets, regulation is looming larger than ever in their list of priorities. For Singapore buy-side firms and OTC derivatives traders, 1 July 2014 is an important date which they have been working towards as it pertains to trade reporting.
Regulations issued by the Monetary Authority of Singapore (MAS) relating to mandatory reporting of OTC derivative contracts traded or booked in Singapore came into effect last year. This is the latest in a number of ongoing regulatory moves across the region to tighten trading requirements and enhance transparency through reporting.
The first phase of Singapore’s reporting regime commenced this year where licensed banks were required to begin reporting their interest rate and credit derivatives transactions booked in Singapore.
1 July marks the start of the extension of mandatory trade reporting of interest rate and credit derivatives transactions booked in Singapore, for all trustees and fund managers and other capital market service license holders, registered insurers, finance companies as well as subsidiaries of banks incorporated in Singapore. Phase II, which is expected to commence after October 2014, will cover FX, equity and commodity derivatives.
Over recent years, Bloomberg has been at the forefront working with regulators in the US, Europe and Asia to bring information to the market. As a partner to both the buy-side and sell-sides, we are in a unique position to help clients navigate the regulatory maze.
To enable Singapore buy-side firms to comply with new regulations, we have launched Bloomberg’s MAS trade reporting solution, which allows our clients to seamlessly connect to a Trade Repository (TR) without the need for building or maintaining complex connectivity. Our solution allows users to connect to DTCC Data Repository (Singapore) Pte. Ltd, the only licensed TR in Singapore, to fulfill their reporting obligations under MAS rules. This process can also be applied to trades done outside of the Bloomberg Professional service. Our solution is multi-asset covering IRS, CDS, FX, equities and commodities, and can be easily integrated into existing workflows.
Asia is home to some of the world’s fastest growing economies and demand for effective risk management solutions is rising. New regulations, if implemented correctly, can enhance transparency in derivatives markets, increase accountability and strengthen infrastructure supporting global financial markets. At Bloomberg, we are enhancing and building new risk and compliance systems that can anticipate and help our clients in the Asia Pacific region deal with complex regulatory changes and requirements.
In addition to the MAS in Singapore, we also support trade reporting in the US in compliance with Commodity Futures Trading Commission (CFTC) requirements and in Europe, with the European Securities and Markets Authority (ESMA).
To find out more about regulation around the world and how Bloomberg can help, visit AREG <GO> on the Bloomberg Professional service.
Mark Flatman, Head of Asia Pacific Sales, Bloomberg LP