THE FINANCIAL SECTOR:
KEY SUPERVISORY AND REGULATORY INITIATIVES
     
Content Page
Supervision
Regulation
Risk-based Regulatory Regime
Fine-Tuning Regulatory framework
Ensuring Sound Market Conduct
Innovative Systems for Efficient Payment
and Settlement
 
 
INNOVATIVE SYSTEMS FOR EFFICIENT PAYMENT AND SETTLEMENT
 
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MAS to Launch New Electronic Payment System . Payment Systems Figures
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Global Settlement System for Foreign Exchange
 
On 10 September 2003, the Singapore Dollar (SGD) was included as one of the 11 currencies in the Continuous Linked Settlement (CLS) system. The other 10 currencies are the Australian Dollar, Canadian Dollar, Danish Krone, Euro, Japanese Yen, Norwegian Krone, Pound Sterling, Swedish Krona, Swiss Franc and the US Dollar.

CLS is the world’s first simultaneous global multi-currency settlement system which eliminates FX settlement risk. The inclusion of the SGD represents a significant milestone for Singapore to create a safer FX settlement environment. As of April 2004, the CLS Bank settled about 649 SGD FX trades a day worth more than S$11.1 billion. Since CLS only requires funding on a net basis, actual average daily payment (pay-in) is reduced by about 87.4% to S$1.4 billion, resulting in improved liquidity efficiency and lower funding requirements for CLS users. A link from the MAS Electronic
Payment System (MEPS) to the CLS system was also completed to include SGD as a CLS settlement currency.