Supervision of Financial Market Infrastructures in Singapore
Singapore, 14 January 2013… The Monetary Authority of Singapore (MAS) has issued a monograph on Supervision of Financial Market Infrastructures in Singapore. The monograph sets out MAS’ approach in supervising financial market infrastructures (FMI) in Singapore to foster their safety and efficiency1. It updates and replaces the 2004 monograph on MAS’ Roles and Responsibilities in Relation to Securities Clearing and Settlement Systems in Singapore.
2 The monograph sets out MAS’ adoption of the Principles for Financial Market Infrastructures (PFMI), issued by the Committee on Payment and Settlement Systems (CPSS) and the International Organisation of Securities Commissions (IOSCO) in April 2012. The PFMI contains new and more demanding international standards designed to ensure that the infrastructure supporting global financial markets is robust and thus well placed to withstand financial shocks. All systemically important FMIs in Singapore are expected to comply with the PFMI. Currently, these are:
3 The monograph also highlights our supervisory objectives of ensuring the safety and efficiency of FMIs and introduces the regulatory framework for FMIs set out in the Payment Systems (Oversight) Act (Cap. 222A) and the Securities and Futures Act (Cap. 289). It articulates our supervisory approach to systemically-important FMIs and our supervisory toolkit which includes regular monitoring, dialogues with the FMI, and reviews of risk areas.
4 The monograph complements earlier monographs which set out MAS’ overall approach to financial supervision, namely the 2004 monograph Objectives and Principles of Financial Supervision (2004 monograph), the 2007 monograph MAS’ Framework for Impact and Risk Assessment of Financial Institutions and the 2010 monograph Tenets of Effective Regulation.
Note to Editor:
The PFMI was issued by the Committee on Payment and Settlement Systems (CPSS) and the International Organisation of Securities Commissions (IOSCO) in April 2012, following a comprehensive review of three pre-existing sets of standards for FMIs – the Core Principles for Systemically Important Payment Systems, the Recommendations for Securities Settlement Systems, and the Recommendations for Central Counterparties. Prior to the issuance of the PFMI, MAS had applied these pre-existing standards in its supervision of relevant FMIs. MAS now adopts the standards set out in the PFMI in addressing risks and efficiency in FMIs.
1 FMIs are infrastructures that facilitate the clearing, settling, or recording of payments, securities, derivatives or other financial transactions.