The Central Counterparties (Equivalence) (Singapore) (Monetary Authority of Singapore) Regulations 2023

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations set out the Treasury’s equivalence determination in respect of the regulatory framework that applies to certain central counterparties (CCPs) that are established in Singapore and authorised by the Monetary Authority of Singapore (MAS).

These Regulations are made in exercise of the powers conferred by Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (UK EMIR). Article 25(1) of UK EMIR provides that a CCP established overseas may only provide clearing services to clearing members or trading venues established in the United Kingdom where that CCP is recognised by the Bank of England. The Bank of England is only able to recognise a CCP where the regulatory framework in which they operate has been determined as equivalent by the Treasury.

Regulation 2 sets out the Treasury’s determination that the regulatory framework in relation to CCPs established in Singapore and authorised by the MAS as approved clearing houses (ACHs) is equivalent to the United Kingdom’s framework. Any CCP established in Singapore and authorised by the MAS as an ACH is required by the MAS to comply with the Principles for Financial Market Infrastructures issued by the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions.

Not all CCPs authorised by the MAS are subject to the legal and supervisory framework that applies to CCPs authorised by the MAS as ACHs. The other category of CCPs authorised by the MAS is recognised clearing houses (RCHs). The legal and supervisory framework for ACHs and RCHs are different. These Regulations apply only to ACHs. A list of the CCPs approved by the MAS as ACHs is available at www.mas.gov.sg.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument at www.legislation.gov.uk.