MAS to step up 'supervisory engagement' to ensure banks meet Sora transition timelines
Key challenge is how to encourage market participants to shift from SOR-based market, which is still deep and liquid, to nascent but developing Sora-based market: top official
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Singapore
THE Monetary Authority of Singapore (MAS) will be stepping up supervisory engagement to ensure that banks in the Republic are well-prepared to transition from Swap Offer Rate (SOR) - a key interest rate benchmark - to the Singapore Overnight Rate Average (Sora) by the end of 2021, said a top official.
Close to S$1.4 trillion notional value of outstanding SGD derivatives contracts referencing SOR, and around 12,000 SOR contracts in SGD cash markets amounting to S$95 billion will mature after end-2021, and will need to transition.
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