Financial markets: European Commission and Monetary Authority of Singapore announce common approach on derivatives trading venues


The European Commission and the Monetary Authority of Singapore today announced a common approach for EU and Singapore derivatives trading venues.

This will ensure that EU counterparties can continue to trade the most liquid derivatives instruments on Singaporean platforms, in compliance with the trading obligation under the Markets in Financial Instruments Regulation (MiFIR) and in line with the G20 reforms for standardised derivatives to be traded on trading platforms. Valdis Dombrovskis, Vice-President in charge of Financial Stability, Financial Services and Capital Markets Union said: “The European Union remains open for business. Our announcement confirms how global cooperation can bring tangible benefits to EU market participants. European firms will be able to continue trading interest rate and credit default derivatives on Singapore’s trading platforms, and engaging with local counterparts in Asia, while Singaporean firms will be able to use EU platforms. This will facilitate trade and economic exchanges between the EU and Singapore. I want to thank Deputy Prime Minister Shanmugaratnam and his team for working with us towards this mutually beneficial outcome.” Vice-President Dombrovskis intends to propose to the Commission the adoption of an equivalence decision to recognise a list of organised markets established in Singapore, operated by an approved exchange or a recognised market operator, as platforms eligible for the execution of derivatives subject to the EU “on venue” trading obligation, provided the requirements of MiFIR are met. Before the Commission can adopt such an equivalence decision, it first has to consult Member States. At the same time, the Monetary Authority of Singapore intends to propose the adoption of regulations to exempt the EU’s Multilateral Trading Facilities and Organised Trading Facilities from the requirements in Singapore. See joint statement here.