Trading in commodity futures is currently regulated under the Commodity Trading Act (CTA) by International Enterprise Singapore (IE). IE and MAS plan to transfer regulatory oversight of commodity futures from IE under the CTA to MAS under the SFA and the FAA. Commodity futures would then come under the same regulatory framework as other types of futures contracts (such as financial futures contracts) currently regulated by MAS.
This transfer will facilitate Singapore’s growth as a hub for commodity futures trading. A single regulator for all futures related activities will streamline licensing and compliance, as entities broking both commodity futures and financial futures (regulated by MAS) would only need a single licence. MAS has consulted closely with industry players to ensure a smooth transition.