News

MAS Consultation Paper On Acceptable Collateral And Contract For Differences 
Posted on Tuesday, September 27, 2005 - 12:00 AM

The Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations 2002 ("the Regulations") prescribe the types of collateral that a holder of a capital markets services ("CMS") licence may take to meet margin requirements for its securities financing business. MAS proposes in this consultation paper to expand the list of acceptable collateral.

This consultation paper also sets out proposed margin requirements for a CMS licensee that offers contracts in differences ("CFDs"), a product which is gaining popularity amongst investors and which exhibits similar risk characteristics to a single stock futures contract.

MAS invites comments from CMS licensees and other interested parties on the proposed amendments to the Regulations. Please note that all submissions received may be made public unless confidentiality is expressly requested for all or part of the submission. Electronic submission is encouraged.

Kindly submit your comments in writing by 28 October 2005 to:
Prudential Policy Department
Monetary Authority of Singapore
10 Shenton Way, MAS Building
Singapore 079117
Fax: 6220 3973
Email: policy@mas.gov.sg