Introduction

1 Good morning, ladies and gentlemen. I am glad to join you at the inaugural annual legal forum for Asia Pacific organised by the International Swaps and Derivatives Association (ISDA).

2 ISDA has organised various forums, conferences and educational events in Singapore, the region and around the world to promote knowledge-sharing, address developments in the derivatives market, and engage industry participants on regulatory changes. Today’s event is momentous as it is ISDA’s first annual legal forum in the Asia Pacific region. This is a significant addition to ISDA’s offering to Singapore and the region. I would like to express my appreciation to ISDA for inviting me to speak at this event.

3 ISDA’s long-standing history of working with the industry is evident to many of us here. Since its establishment in 1985, ISDA has pursued its mission to foster safe and efficient derivates markets to facilitate effective risk management practices, representing market participants globally on a range of important issues that include advocating for policies that promote fair and efficient markets and driving standardisation of contract documentation to reduce legal uncertainty and foster transparency in the derivatives market. Over time, ISDA has developed a wide range of legal documentation that market participants worldwide have come to adopt. This includes ISDA’s most well-known documentation, the ISDA Master Agreement.

Constructive engagement

4 As part of its ongoing effort to respond to the evolving challenges in the derivatives market, ISDA has constructively engaged with various stakeholders, including policy makers and regulators to explore and co-create solutions that address the concerns and objectives of market participants and policy makers. One example of this is the important role that ISDA played in supporting the multi-year over-the-counter derivatives reforms following the 2008 global financial crisis to improve transparency and reduce systemic risk in global derivatives markets.

5 Much has been done, but the work continues, including the amendments to the regulations for the reporting of derivative contracts. I would like to thank ISDA and representatives present today whose organisations have provided constructive feedback to MAS during our public consultation process.

6 Another example that is worth noting is ISDA’s contribution to the global interest rate review and reform process, to help transition markets from outdated benchmarks in major markets. Locally, ISDA has actively supported Singapore’s transition from Singapore’s SGD Swap Offer Rate (SOR) and the Singapore Interbank Offered Rate (SIBOR) to the Singapore Overnight Rate Average (SORA), providing industry standards and documentation to support the adoption of SORA – a more robust and transparent benchmark.

Exploring opportunities for growth and innovation

7  Beyond addressing and responding to current challenges, I note ISDA’s efforts to prepare itself and the industry for the future of finance. This includes studies and work that ISDA has undertaken on the digital asset markets and private international law aspects of smart derivatives contracts using distributed ledger technology.

8 More recently, ISDA joined MAS’ Project Guardian as part of the Foreign Exchange (FX) workstream, to work with the industry group and the Global Foreign Exchange Division of the Global Financial Markets Association, with a focus on developing FX data specifications, risk management frameworks and FX documentations in a digital asset ecosystem. The collaborative work that is done through Project Guardian has significant potential to forge industry standards, establish policy guidelines and frameworks, and to develop a sound and sustainable digital asset ecosystem.

9 I note that ISDA is also evaluating how it may contribute in the area of sustainable finance through the development of the carbon credit market. This is a topic that will be discussed this morning.

Reflections for professionals

10 As we think about ISDA’s contributions to the industry, I see interesting parallels in the mission and roles of legal professionals present today, and if I may say, compliance and risk management professionals as well. These include:

a. forging constructive engagement with clients and other stakeholders to solve problems, mitigate risks and anticipate future challenges; and

b. cultivating a hunger to explore and harness technological and other enablers to foster innovation and enhance your value proposition,

both of which demonstrate an enduring commitment to professional excellence.

Legal forum ahead

11 The topics that will be discussed at today’s forum will be very informative and helpful to legal professionals in your journey to address the more immediate challenges and explore interesting opportunities that lie ahead. The topics will also further ISDA’s mission in the sphere of regulation and reform.

12 I would like to congratulate ISDA on assembling a line-up of distinguished and experienced speakers and panellists and commend ISDA for the array of interesting and important topics for discussion at the legal forum today.

13 I look forward to all participants having an interesting and meaningful forum ahead, and I look forward to more of such topics for future editions of ISDA’s annual legal forum.

Conclusion

14 To round up, MAS is grateful for the work that ISDA has done. We look forward to future collaborations with ISDA and hope for ISDA’s continued contribution to our consultations. ISDA’s support will help MAS better shape the future for Singapore’s derivatives and financial markets.

15 With that, I thank you and I wish you all a meaningful and fruitful legal forum ahead. Thank you.

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