Singapore & China Regulators Agree on Cross-Border Derivatives Cooperation

This agreement will see an enhanced cooperation and supervision of the futures markets in both countries.

The Monetary Authority of Singapore (MAS) and the China Securities Regulatory Commission (CSRC) announced on Wednesday that they have outlined a number of ways in which they plan to enhance the cooperation and financial connection between the capital markets of both countries.

The measures are the result of the third Supervisory Roundtable between the two regulators, which was held on October 24, 2018. One of the key highlights to come out of the meeting includes an agreement on a cross-border derivatives cooperation.

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Building upon discussions from last year’s meeting, the two financial regulators have agreed on the substantive areas for cooperation in supervising exchange-traded derivatives. According to the statement, the agreement will be formalized as a Memorandum of Understanding (MoU) in the near future.

This agreement will also see enhanced cooperation and supervision of the futures markets in both countries. The aim of this is to facilitate the stable development of the futures markets in both Singapore and China.

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Ong Chong Tee, MAS, Monetary Authority of Singapore
Ong Chong Tee
Source: Monetary Authority of Singapore

Commenting on the developments, MAS’ Deputy Managing Director Ong Chong Tee said: “the Roundtable has been an excellent platform for us to work on meaningful initiatives to enhance supervisory cooperation. With increased cross-border capital market activities, MAS and CSRC acknowledge the importance of improving regulatory coordination and ensuring the financial stability of our capital markets.

“The derivatives MOU will lead to more effective cross-border regulatory oversight of futures markets, while the staff exchange arrangement will deepen ties between staff at both agencies.”

MAS and CSRC sign MoU to allow staff exchanges

As a result from the Roundtable, MAS and CSRC also signed a Staff Exchange MoU. This agreement will facilitate staff exchanges between the two regulators. The aim of this it to deepen the working relationship between the two watchdogs as well as help build a mutual understanding.

According to the statement, MAS and CSRC also discussed enhancing the cross-border supervision of each other’s capital markets, the application of data analytics and the role of capital markets supporting the Belt and Road Initiative.

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