Singapore’s Benchmarks Get Seal of Approval From European Union

(Bloomberg) -- The European Commission’s seal of approval for Singapore financial benchmarks will allow companies in the European Union to continue trading derivative products linked to the city state’s benchmark interest rates, Singapore’s financial regulator said Wednesday.

The administrators of certain interest rates and foreign exchange benchmarks in Singapore are recognized under the European Union framework, according to a statement by the European Commission this week. Singapore’s interbank offered rate and swap offer rate, known as Sibor and SOR respectively, are used in derivative instruments such as interest rate swaps.

“Singapore has secured a broad set of equivalence decisions with the EU, including for OTC derivatives trading venues, central counterparties, and now financial benchmarks,” Lee Boon Ngiap, Assistant Managing Director at the Monetary Authority of Singapore, said in a statement. “This is important to facilitate trade flows and financial activities between the EU and Singapore.”

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