Reporting of foreign exchange, equity and commodity derivatives contracts by finance companies and certain bank subsidiaries, insurers and capital markets services licence holders, and significant derivatives holders deferred to 1 October 2021

28 May 2020

The Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013 (“Reporting Regulations”) have been recently amended. Among other things, the requirement for finance companies, subsidiaries of Singapore incorporated banks, insurers and capital markets services licence holders, and significant derivatives holders to report foreign exchange, equity and commodity derivatives contracts to a licensed trade repository or licensed foreign trade repository has been deferred from 1 October 2020 to 1 October 2021.

The reporting requirements with regard to over-the-counter (OTC) derivatives contracts are set out in Part VIA of the Securities and Futures Act (“SFA”) and the Reporting Regulations. A “specified person” who is a party to a “specified derivatives contract” is required to report certain prescribed information to a licensed trade repository or licensed foreign trade repository.

A “specified person” under the SFA refers to any:

  • licensed bank and merchant bank in Singapore; 
  • subsidiary of a Singapore incorporated bank;
  •  licensed finance company or insurer in Singapore, and a capital markets services licence (“CMSL”) holder under the SFA; or 
  • significant derivatives holder, namely, a person who is resident in Singapore and where the aggregate gross notional amount, for the year ending on the last day of a quarter, of the “specified derivatives contracts” to which it is a party and which are booked and/or traded in Singapore exceeds S$8 billion.

Obligation to report foreign exchange, equity and commodity derivatives contracts deferred to 1 October 2021

Previously, the following entities were required to report, with effect from 1 October 2020, foreign exchange, equity and commodity derivatives contracts booked and/or traded in Singapore:

  •  a subsidiary of a Singapore incorporated bank; 
  • a licensed finance company, insurer and CMSL holder; and
  • significant derivatives holders.

Pursuant to the Securities and Futures (Reporting of Derivatives Contracts) (Amendment No. 2) Regulations 2020, the Second Schedule to the Reporting Regulations has been amended to defer the aforementioned reporting obligation to 1 October 2021.

Excluded contracts in computation of gross notional amount of specified contracts for significant derivatives holder

Some contracts are excluded in computing the aggregate gross notional amount of specified derivative contracts to which a significant derivatives holder is a party and which are booked and/or traded in Singapore for the year.

Previously, foreign exchange, equity and commodity derivatives contracts traded in or booked in Singapore were excluded where the last day of the quarter in question is on or after 1 April 2019 but before 1 April 2020. This was provided for in regulation 6(4A) of the Reporting Regulations.

With effect from 28 April 2020, foreign exchange, equity and commodity derivatives contracts traded in or booked in Singapore are excluded where the last day of the quarter in question is on or after 1 April 2019 but before 1 April 2021.

Reference materials

The following materials are available on the Singapore Statutes Online website sso.agc.gov.sg:

 

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