Finance companies, subsidiaries of banks in Singapore, insurers and CMS licence holders will come into scope for reporting from 1 October.
DTCC (Depository Trust & Clearing Corporation) has announced that its Global Trade Repository (GTR) service is ready to support MAS (Monetary Authority of Singapore)’s derivatives trade reporting requirements scheduled to take effect on 1 October 2021.
The GTR trade reporting service will be available via DTCC Data Repository (Singapore), known as DDRS – the only trade repository service approved by MAS to operate in Singapore.
Singapore banks are already required to report credit, interest rate, FX, equity and commodity derivatives booked or traded in the city-state. It was initially intended that the reporting obligations would extend to other firm types from October 2020, but this was delayed due to the impact of the Covid-19.
From October 2021, the final phase of MAS’ reporting regulations for OTC derivatives contracts will be the last step in the trade reporting rules, as set out in the Securities & Futures Act, which was enacted in 2001 and revised in 2006.
Under the change, finance companies, subsidiaries of banks in Singapore, insurers and CMS licence holders into scope for reporting if they trade an aggregate gross notional amount of more than SGD 5 billion in derivatives contracts annually.
Significant derivatives holders will also come into scope – namely, persons with specified derivatives contracts in an annual aggregate gross notional amount of more than SGD 8 billion.
As of October 2021, these firms will be required to report their equities, commodities and FX derivatives contracts traded and/or booked in Singapore to MAS. Firms will be able to report their applicable derivatives contracts either directly to DDRS or via delegated reporting.
“We are pleased to support MAS in its efforts to reduce risk and increase transparency in the derivatives market by adding a broader set of financial firms to the reporting regime,” said Priya Kundamal, DTCC General Manager and Head of DDRS. “Now is the time for newly in-scope firms to review their preparations as the compliance date draws near.”
Separately, MAS is still consulting on proposed amendments to its OTC derivatives reporting rules to incorporate the UTI, UPI and other CDE (critical data elements), as set out by CPMI-IOSCO. The consultation is open for comment until 3 September 2021.