MAS: Annual report 2006 / 2007
CONTENTS
HOME
 
ENTERPRISE: Our Role
BUILDING ON A ROBUST MACROECONOMIC ENVIRONMENT
DEVELOPMENTS IN THE SINGAPORE SECURITIES MARKET
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE
RISK MANAGEMENT & INFRASTRUCTURE
GROWING SINGAPORE AS AN INTERNATIONALLY COMPETITIVE FINANCIAL CENTRE
CURRENCY
ORGANISATIONAL INITIATIVES
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE 25
Changes to Capital Requirements for Singapore-incorporated Banks 25
Enhancing MAS’ Role in Bank Resolution 25
Changes to Rules on Unsecured Credit 25
Shift Towards Large Exposures Regime 26
Introduction of Asset Maintenance for Foreign Banks 26
Box 3 - An Update On Basel II Implementation In Singapore 26
Legislative Amendments to Securities and Futures Act and Financial Advisers Act 27
Box 4 - Monograph On Supervisory Framework For Financial Institutions 27
T rust Companies 28
Self-assessment Initiative 28
Anti-Money Laundering & Countering the Financing of Terrorism 28
Building Confidence in E-payments and Internet Banking Systems 28
Insurance Securitisation 29
Nomination of Beneficiaries to Insurance Policies 29
Policy Owners’ Protection Fund 29
Box 5 - Supervision Of New Initiatives in the  
  Singapore Capital Markets - Jade And AsiaClear 30
Mortgage Insurance 30
Thematic Approach to Market Conduct Supervision 30
Box 6 - Market Manipulation 31
Mystery Shopping on Practices in the Financial Advisory Industry 31
Review on Switching of Investment Products 31
Enhancing Market Discipline 31
Corporate Governance of Listed Companies 32
Amendment to Code on Collective Investment Schemes 32
Implementation of Payment Systems (Oversight) Act 2006 32
 
Box 5

SUPERVISION OF NEW INITIATIVES IN THE SINGAPORE CAPITAL MARKETS - JADE AND ASIACLEAR
The Singapore Exchange (SGX) has been actively pursuing new initiatives in the past year. It launched the SGX AsiaClear Over-the-Counter (OTC) clearing facility in May 2006, and the Joint Asian Derivatives Exchange (JADE) for commodity futures trading, a partnership with the Chicago Board of Trade, in September 2006. These are new areas of growth for Singapore's capital markets, responding to increased demand from Asian clients for trading and clearing of commodity derivatives and global demand for trading Asian-based commodity derivatives.

As part of MAS' regulatory objectives, MAS reviews such new capital market initiatives to ensure that robust risk management measures are in place to support a safe and efficient capital market. We have issued regulations to strengthen the legal foundation for new initiatives, including prescribing SGX AsiaClear as a clearing facility under the SFA, and provided guidelines to clarify the treatment of specific clearing activities.