MAS Rewrite: Key Changes and Reporting Deadlines

The Monetary Authority of Singapore (MAS) is set to implement significant updates to the reporting requirements for over-the-counter (OTC) derivatives in October 2024, harmonising Singapore’s Derivatives’ Reporting regime with the IOSCO-CPMI critical derivatives elements work.

With the compliance deadline set for October 21st, 2024, market participants must swiftly adapt their reporting practices to align with the revised requirements.

The MAS Rewrite introduces a plethora of alterations aimed at enhancing transparency, data accuracy, and regulatory oversight in the derivatives market.

Some of the key differences that are introduced by the MAS Rewrite are:

  • ISO 20022 XML Data Format: The MAS Rewrite mandates the adoption of a new reporting format, leveraging the ISO 20022 messaging standard. This standardized format streamlines data exchange and improves interoperability between market participants and regulatory authorities.
  • Unique Trade Identifier (UTI) and Unique Product Identifier (UPI): Introduction of more detailed transaction and instrument information to improve traceability and risk assessment. These will have identical modalities as those introduced in other jurisdictions such as the EU, the UK, the ASIC and the USA.
  • Event Type and Action Type: The combination of these two fields results in dozens of distinct and permissible combinations of values. This significantly alters lifecycle event management, necessitating specific actions within the entity’s reporting system.
  • Collateral and Valuation reporting: Introduction of mandatory reporting on the valuation of derivatives and associated collateral, aimed at providing a clearer view of exposure and credit risk.
  • New and expanded Reporting Details: In general, market participants are obligated to include additional or expanded details and values in their reports, like the Notional Schedule fields, Spreads and Options related information, information related to Other Payment Types, Package fields, Action Type Revive, Event Types, and more. These enhancements aim to provide regulators with deeper insights into market activities.
  • Re-reporting: Re-reporting must take place within six months of go-live. There is an exemption for re-reporting of information that previously was not captured at the point when the contract was executed. No re-reporting is required for contracts with a maturity of less than six months from the go-live date.
  • New EoD and Intraday Reports: Counterparties will be receiving streamlined Trade and Margin related intraday and end of day reports, which will empower them by providing enhanced transparency and clarity into their reporting, facilitating their risk management, compliance oversight and informed decision-making.
  • T+2 Reporting Deadline: The MAS Rewrite stipulates a T+2 reporting timeline, requiring market participants to submit derivative transaction reports within two business days following the transaction execution date.
  • Reporting Significant Issues to Regulatory Authorities: This new requirement mandates the disclosure by the reporting party of any significant issues (defined as reporting obstacles that prevent reporting, misreporting by a reporting system flaw or an issue that causes a large number of rejected reports) encountered during the reporting process. The objective is to enhance regulatory oversight and ensure timely intervention to mitigate potential risks, thereby maintaining the integrity and stability of the financial market.

In conclusion, the MAS Rewrite heralds a new era of derivatives reporting in Singapore, ushering in comprehensive reforms aimed at bolstering transparency, data quality, and regulatory oversight. Market participants must swiftly adapt to these changes to ensure seamless compliance with the revised regulatory landscape.

How MAP FinTech may assist

To navigate this complex landscape seamlessly, trust MAP FinTech’s expertise, cutting-edge technology and customised solutions. Our team provides expert guidance to ensure your understanding of the implications of MAS Rewrite, while our advanced reporting solutions ensure accuracy and efficiency. With personalized support and ongoing assistance, we can assist you to swiftly adapt and confidently embrace compliance in this evolving regulatory environment.

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