On March 31, FIA Asia and ASIFMA, a trade association representing international banks and brokers active in Asian markets, submitted a joint comment to the Monetary Authority of Singapore's consultation on proposed amendments to the Securities and Futures Act. The amendments were proposed in February as part of the ongoing effort to regulate over-the-counter derivatives as well as the need to keep the law up to date in light of market and international developments. The amendments include reforms relating to the regulation of OTC derivatives, including regulation of derivatives markets, trading and licensing of intermediaries, changes to types of regulated activities and the transfer of regulation of commodity derivatives.
FIA Asia and ASIFMA said they support efforts by the MAS to minimize duplicative, inconsistent and conflicting regulatory requirements. The groups raised concerns about a proposal in the consultation to replace all references to futures contracts with the term derivatives contracts and urged MAS to ensure there is a clear distinction between exchange-traded derivatives and OTC derivatives. The groups also highlighted the need for sufficient time to review subsequent implementing rules “to ensure there are no unintended consequences and to minimize market disruption and fragmentation.”
