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
SGX introduces SPAC listing framework
Introduction
The use of special purpose acquisition companies (SPACs) as an alternative route to access the equity capital markets in the United States of America (US) has fluctuated in popularity over the years as a result of changes in both market conditions and investor appetite. However, US SPAC activity has been
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
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
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
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
APLMA issues SOFR-based Discussion Documents and Guidance Note
The Asia Pacific Loan Market Association (APLMA) has issued SOFR-based Discussion Documents and Guidance Note on 12 November 2020. This is a significant milestone in promoting discussions and accelerating the transition process in Asia.
There is no settled market approach or convention as yet given the nascent stage of development of the RFR loan markets.
SIBOR Reform and shift towards SORA as the main SGD interest rate benchmark
The Association of Banks in Singapore (ABS), the Singapore Foreign Exchange Market Committee (SFEMC), and the Steering Committee for SOR Transition to SORA (SC-STS) have issued a consultation report, SIBOR Reform and the Future Landscape of SGD Interest Rate Benchmarks (Report).
The Report recommends the discontinuation