ABS-SFEMC Finalises Proposals on the Evolution of SIBOR
The Singapore Guide to Conduct & Market Practices for the Wholesale Financial Markets
ABS-SFEMC Consultation on the Evolution of SIBOR
Joint Statement on the Publication of the FX Global Code: May 2017
Joint Statement on the Publication of the FX Global Code - May 2016 Update
Press Release for Global Preamble
Joint Statement on FSB FXBG Report
4 November 2011
SFEMC statement on best market practice for unwinding of open positions in relation to MF Global Singapore Pte. Limited
The Singapore Foreign Exchange Market Committee ('SFEMC") notes the recent developments in relation to MF Global group of companies.
MF Global Holdings Ltd. and its finance subsidiary, MF Global Finance USA Inc., announced a filing under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York on 31st October 2011. Subsequently, MF Global Singapore Pte. Limited (the “Company”), was put under provisional liquidation and with effect from 1 November 2011,
Subject to the priority of any existing contractual rights between the parties, for purpose of orderly unwinding of open positions, SFEMC considers best market practice for close out of foreign exchange, interest rate and commodity transactions between the Company and its customers, to be the mid market levels of relevant market rates as of 1st November 2011.
The Singapore Foreign Exchange Market Committee (SFEMC) seeks to clarify the application of the 'CNY SAEC' rate fixing on the Chinese Renminbi (CNY) currency for 21 October 2010. The CNY SAEC fixing rate was initially published as 6.6495 on the Reuters Screen "SAEC" page at about 9.16am, 21st Oct 10. The rate was subsequently amended to 6.6695 at about 9.36 am on 21
Pursuant to Section 4.7 of Annex A to the 1998 FX and Currency Options Definitions as published by ISDA, EMTA and the Foreign Exchange Committee, SFEMC recommends market participants to treat the amendment of the rate on Reuters Screen "SAEC" Page as a correction. The committee encourages market participants to make reference to the amended fixing rate of 6.6695 for transactions which involve the 21st Oct CNY SAEC rate fixings.
Section 4.7 is extracted below for ease of reference.
Corrections to Published and Displayed Rates. For purposes of determining the Spot Rate for any Rate Calculation Date:
(a) In any case where the Spot Rate for a Rate Calculation Date is based on information obtained from the Reuters Monitor Money Rates Service or the Dow Jones Telerate Service, the Spot Rate will be subject to the corrections, if any, to that information subsequently displayed by that source within one hour of the time when such rate is first displayed by such source.
(b) Notwithstanding subsection (a) above, in any case where the Spot Rate for a Rate Calculation Date is based on information published or announced by any Governmental Authority in the relevant country, the Spot Rate will be subject to the corrections, if any, to that information subsequently published or announced by that source within 5 days of the Rate Calculation Date.
(c) In the event that a party to a Transaction notifies the other party to the Transaction of any correction referred to in subsections (a) or (b) above no later than 5 days after the expiration of the period referred to in such subsection, an appropriate amount will be payable as a result of
such correction (whether such correction is made or such notice is given before or after the Settlement Date of the Transaction), together with interest on that amount at a rate per annum equal to the cost (without proof or evidence of such cost) to the relevant party (certified by it) of funding that amount for the period from, and including, the day on which, based on such correction, a payment in the incorrect amount was first made to, but excluding, the day of payment of the refund or payment resulting from such correction."
The Bank of Thailand has declared on 19th May that 20th May, Thursday and 21st May,Friday, would be non-business days for reasons of public safety. As such, there would be both settlement and payment delays for contracts
maturing on these 2 non-business days.
The SFEMC recommends market participants to extend the maturity of expiring contracts on 20th and 21st May to the next business day on 24th May, Monday for transactions which involve onshore payments in Thailand. However, for
offshore settlements in USD which are not affected by Bangkok holidays, SFEMC recommends settlement to continue on schedule on 20th May or 21st May without any delays.
For USD settled transactions whose FX valuations are scheduled for 20th May or 21st May, the market conventions would usually provide for valuations to be moved to the next business day, i.e. 24th May, and settlement would
happen as soon as practicable thereafter, but no later than 2 business days after valuation, i.e. 26th May. SFEMC recommends this approach unless a different approach has been expressly provided for in any bilateral
agreements between the parties concerned.
The committee strongly encourage relevant parties to adopt this recommendation to facilitate a rapid and efficient resolution.
Updated Mar 17, 2010