The Commodity Futures Trading Commission (CFTC or Commission) and the Monetary Authority of Singapore (MAS) today announced the mutual recognition of certain derivatives trading venues in the United States and Singapore.
The CFTC issued an order exempting certain derivatives trading facilities regulated by MAS from the requirement to register with the CFTC as swap execution facilities (SEFs). Similarly, MAS announced the issuance of regulations exempting certain derivatives trading venues regulated by the CFTC from the requirement to be a MAS-authorized approved exchange (AE) or recognised market operator (RMO) before establishing or operating an organised market.
CFTC Chairman J. Christopher Giancarlo and MAS Assistant Managing Director Lee Boon Ngiap made this joint announcement today at the 44th Annual International Futures Industry Conference hosted by the Futures Industry Association in Boca Raton, Florida.
Chairman Giancarlo stated, “Completion of deference arrangements like these not only support the cross-border activities of participants in the financial markets, but also help avoid market fragmentation, protectionism, and regulatory arbitrage. The global nature of today’s markets requires that regulators work cooperatively across borders to promote growth and innovation while supporting the financial stability of global markets. We seek to ensure that the current international approach to cross-border regulation supports these goals. I am especially pleased to have the opportunity to make this announcement today in person alongside MAS Assistant Managing Director Lee Boon Ngiap. This announcement with MAS is just the latest example of the close relationship the CFTC has with MAS. I thank MAS Managing Director Ravi Menon, and the staff of MAS for all their work in reaching this positive result.”
Ravi Menon, Managing Director, MAS, said, “This arrangement on mutual recognition between CFTC and MAS accomplishes the G20 swaps reforms in a purposeful manner. It will improve cross-border market efficiency and resilience and provide U.S. and Singapore market participants access to deeper pools of liquidity. Participants from the US and Asia can now trade with one another on the same trading platforms, allowing for risks to be managed more efficiently. I am grateful to Chairman Giancarlo and the staff of CFTC for the partnership that led to today’s outcome and look forward to further cooperation in the future.”
Re-disseminated by The Asian Banker