MAS proposes plan to strengthen the process of determining SGS, MAS bills' closing prices

THE Monetary Authority of Singapore (MAS) has out out a consultation paper recommending a framework to strengthen the process of determining Singapore Government Securities (SGS) and MAS bills end-of-day prices.

MAS said this was in line with its broader efforts to enhance the integrity of the processes for setting financial benchmarks.

As of end-October 2017, outstanding SGS and MAS bills amounted to more than S$200 billion. the central bank said in a media release on Friday. The prices of these securities are used by financial institutions to value their SGS and MAS bills holdings, by institutional and retail investors to guide their investment decisions in SGS and MAS bills and by MAS to set the Singapore Savings Bond interest rates.

The new framework aims to enhance the robustness of pricing inputs and methodology to calculate closing prices, and to strengthen governance and procedures in determining closing prices, said MAS. The new framework will take reference from the principles for financial benchmarks developed by the International Organization of Securities Commissions.

MAS said interested parties can submit their comments on the proposed framework by Jan 19, 2018. A copy of the consultation paper is available on its website.