The SC-STS has updated the SORA Market Compendium. With the deadlines for the cessation of use of SOR for new loans, securities and derivatives having passed, this update provides market participants with a snapshot and market insights on the SOR to SORA Transition to date as well as current and expected volumes, liquidity and
ARRC formally recommends Term SOFR
On 29 July 2021, the ARRC has formally recommended the CME Group’s forward-looking Secured Overnight Financing Rate (SOFR) term rates (Term SOFR). It follows the completion of interdealer trading conventions to SOFR earlier this week. This means that parties which have contracts which include the ARRC hardwired fallbacks will fallback to Term SOFR given that
SC-STS Publishes recommendations and updated timelines for transition to SORA
The SC-STS published its Recommendations for Transition of Legacy SOR Contracts on 29 July 2021, with updated timelines and key recommendations for the industry-wide transition from SOR to SORA.
Market participants are urged to take active steps to substantially transition out of legacy SOR exposures by 31 December 2021, using the SOR-SORA basis swap
MAS Consultation – Proposed amendments to impose requirements on financial institutions conducting unregulated business
The Monetary Authority of Singapore (MAS) issued a consultation paper on 2 July 2021 seeking views on various proposals, including to introduce powers to enable the MAS to impose requirements on certain financial institutions conducting unregulated business.
The MAS recognises that some of its regulated entities may be carrying on unregulated activities (e.g.
SC-STS issues implementation guidance on SOR loans and end-September 2021 timeline for cessation of issue of SOR Derivatives and SIBOR-linked Financial Products
The SC-STS have issued the Timelines to Cease Issuance of SOR Derivatives and SIBOR-Linked Financial Products and recommended the end-September 2021 as the timeline for all banks to cease issue of SOR derivatives and SIBOR-linked cash products. The SC-STS also took the opportunity to issue guidance on dealing with the limited cases of SOR
FCA Announcement on cessation of LIBOR and ISDA’s statement
Today, the FCA has confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative:
- immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and Japanese yen settings, and the 1-week and 2-month US dollar settings; and
- immediately after 30 June 2023,
Singapore’s SC-STS Announces Further Measures to Boost SORA Transition and Issues Updated Transition Timeline
On 2 February 2021, the Singapore Steering Committee for SOR & SIBOR Transition to SORA (SC-STS) set out key steps to further advance the industry transition to a SORA-centered SGD interest rate market by end-2021. It also published an updated SC-STS Transition Roadmap 2021/22 with priorities for 2021/2022.
The SC-STS noted that whilst the recent
Animal, Vegetable, Token
This blog series has been named after the classic children’s categorisation game where one player names an object and the other player has to categorise it as an animal, vegetable or mineral. Whilst simple in concept, the difficulty of the game varies – some things are extremely easy to categorise (such as ‘cat’), whereas others
Animal, Vegetable, Token
This blog series has been named after the classic children’s categorisation game where one player names an object and the other player has to categorise it as an animal, vegetable or mineral. Whilst simple in concept, the difficulty of the game varies – some things are extremely easy to categorise (such as ‘cat’), whereas others
SIBOR discontinuation milestone dates published
Singapore’s key financial industry committees, the Association of Banks in Singapore (ABS), the Singapore Foreign Exchange Market Committee (SFEMC) and the Steering Committee for SOR & SIBOR Transition to SORA (SC-STS) (together, the Committees) have released their responses to the feedback received on the report “SIBOR Reform and