The MAS has released a consultation paper on its proposal to introduce an exemption for approved exchanges (“AEs”) and recognised market operators (“RMOs”) which would allow them to provide certain post-trade services without also being subject to regulation as approved or recognised clearing houses. MAS has observed the introduction of new business models where AEs and RMOs also provide such post-trade services, which may fall within the scope of the current regime that regulates the provision of clearing and settlement services – such post-trade services include verifying a trade by confirming the terms of the trade and calculating the obligations of counterparties under a trade. However, MAS has indicated that it is not its intent to impose additional regulatory obligations on such AEs and RMOs where trades are not routed to a clearing facility for clearance or settlement by the facility on a centralised basis.
The consultation paper may be accessed here.
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