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Singapore – Securities And Futures (Reporting Of Derivatives Contracts) (Amendment) Regulations 2014.

20 May, 2014

 

Legal News & Analysis – Asia Pacific – Singapore  Capital Markets

 

The Securities and Futures (Reporting of Derivatives Contracts) (Amendment) Regulations 2014 (“Amendment Regulations”) came into operation on 31 March 2014.


Change Of Reporting Commencement Dates


The most significant change effected by the Amendment Regulations was to push back the deadline for reporting of contracts traded in Singapore by one year. The Securities and Futures (Reporting of Derivatives Contracts) Regulations (“Regulations”) initially required that reporting of interest rate derivatives contracts and credit derivatives contracts by the following persons commence on the following dates:

 

  • Banks and merchant banks: 1 April 2014;
  • Other financial institutions: 1 July 2014; and
  • Significant derivatives holders: 1 October 2014.

 

The commencement dates applied to both contracts booked and contracts traded in Singapore. The Amendment Regulations postponed the commencement dates for the reporting of interest rate derivatives contracts and credit derivatives contracts traded in Singapore to the following:

 

  • Banks and merchant banks: 1 April 2015;
  • Other financial institutions: 1 July 2015; and
  • Significant derivatives holders: 1 October 2015.

 

The commencement dates remain the same for the reporting of interest rate derivatives contracts and credit derivatives contracts booked in Singapore.


When A Person Becomes A Significant Derivatives Holder


Persons who become significant derivatives holders now have more time to prepare for reporting. The Regulations initially stated that a person who satisfied the requirements for being a significant derivatives holder would become a significant derivatives holder on the next day. As the Regulations require a significant derivatives holder to report the required information on a specified derivatives contract within two days after it is executed or terminated, this would mean that this person would need to start reporting almost immediately. The Amendment Regulations provide instead that the person becomes a significant derivatives holder on the last day of the next quarter. This effectively gives him three months to prepare for reporting.


Masking Of Information


The Amendment Regulations clarify the requirements for the deferred reporting of counterparty information by making clear that masking of counterparty information is allowed (until 31 October 2014) if the reporting party is prohibited by laws or regulatory requirements from reporting that information, or if the reporting party is only allowed by such laws or regulatory requirements to report with the consent of the counterparty and such consent cannot be obtained. The reporting party must, however, report the counterparty information within two months after the end of the masking period (i.e., on or before 31 December 2014).


Reporting Identity Of Parties To The Contract

 

One of the items of information to be reported under the Regulations is the identities of the parties to the specified derivatives contracts. The Regulations previously provided only for the reporting of the SWIFT BIC code for parties that were not specified persons and that did not have any LEI or pre-LEI. The Amended Regulations have extended this to allow reporting the AOX ID, any identifier issued by a licensed trade repository or licensed foreign trade repository, or client code where the party in question does not have a LEI or pre-LEI.

 

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For further information, please contact:

 

Elaine Chan, Partner, WongPartnership

elaine.chan@wongpartnership.com

 

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