| The Singapore Foreign Exchange Market Committee (“SFEMC”) is supportive of the Monetary Authority of Singapore’s (“MAS”) efforts to strengthen regulatory oversight of OTC derivatives. We strongly believe that the industry can play a complementary role in building a resilient OTC derivatives market, and contribute positively to the G20 objectives of mitigating systemic risk and improving market transparency in the global OTC derivatives markets.
2. Acknowledging that standardisation provides the foundation to bring about meaningful improvements to the OTC derivatives market, SFEMC, in consultation with MAS, has decided to focus on this aspect as its first initiative to advance OTC derivatives market reforms. As such, each of the SFEMC Main Committee banks commits to achieve the following targets for OTC interest rate derivative transactions by 30 June 2013:
i. To process 95% of electronically eligible confirmable events with G14 Members on electronic platforms.
ii. To process, to the extent possible, 75% of electronically eligible confirmable events with other counterparties on electronic platforms.
iii. To submit and match 98% of electronic confirmations with G14 Members by T+2.
iv. To submit and match, to the extent possible, 90% of electronic confirmations with other counterparties by T+2.
3. Lenny Feder, co-Chairman of the SFEMC, said: “The financial industry in Singapore is committed to being at the global forefront of financial advancement. In keeping with this goal, we have agreed high standards for electronic execution and confirmation of OTC derivatives. These new standards will ensure best-in-class governance, transparency and management of systemic risk, thus ensuring a more resilient financial system in Singapore.”
4. Ravi Menon, Managing Director, MAS said, “The industry’s commitments on increasing standardisation of OTC derivatives in the Singapore market is timely. It is an important first step as Singapore gears up to meet the new regulatory standards for OTC derivatives next year.”
5. These commitments reflect members’ collective efforts towards improving the level of standardisation in Singapore and Asia. The SFEMC will report its performance to MAS on a quarterly basis, and also intend to expand on the range of products, such as NDFs and FX Options, in subsequent phases.
 Initial scope will be limited to the following product classes: Interest rate swaps, Forward Rate Agreements, Overnight Index Swaps and Basis swaps.
 All life cycle events available on electronic confirmation platforms like Markit, DTCC or Swift, subject to the currencies being live for relevant products.
 We recognise that this is dependent on the efforts of non-G14 counterparties which are at different stages of development and infrastructure readiness from G14 Members.