Commission Implementing Decision (EU) 2021/1105 of 5 July 2021 on the recognition of the legal, supervisory and enforcement arrangements of Singapore for derivatives transactions supervised by the Monetary Authority of Singapore as equivalent to certain requirements of Article 11 of Regulation (EU) No 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties and trade repositories (Text with EEA relevance)

For the purposes of Article 13(3) of Regulation (EU) No 648/2012, the legal, supervisory and enforcement arrangements of Singapore for trade confirmation, portfolio compression and reconciliation, valuation and dispute resolution that are applied to transactions regulated as OTC derivatives by the Monetary Authority of Singapore (‘MAS’) and that are not cleared by a CCP shall be considered as equivalent to the corresponding requirements set out in paragraphs 1 and 2 of Article 11 of Regulation (EU) No 648/2012, where at least one of the counterparties to those transactions is established in Singapore and is a ‘MAS Covered Entity’ as defined under the Guidelines on margin requirements for non-centrally cleared OTC derivative contracts.

For the purposes of Article 13(3) of Regulation (EU) No 648/2012, the legal, supervisory and enforcement arrangements of Singapore for the exchange of collateral that are applied to transactions regulated as OTC derivatives by the MAS and that are not cleared by a CCP, with the exception of physically-settled commodity derivatives for commercial purposes, shall be considered as equivalent to the requirements of paragraph 3 of Article 11 of Regulation (EU) No 648/2012, where the following conditions are satisfied: (a) at least one of the counterparties to those transactions is established in Singapore and is a MAS Covered Entity as defined under the Guidelines on margin requirements for non-centrally cleared OTC derivative contracts of Singapore; (b) where variation margin is required to be provided under Regulation (EU) No 648/2012, variation margin is exchanged on the same day in which it is calculated. By way of derogation from point (b), where it is established between the counterparties that variation margin cannot consistently be provided on the same day in which it is calculated, the legal, supervisory and enforcement arrangements of Singapore shall also be considered as equivalent to the requirements of Art. 11(3) of Regulation (EU) No 648/2012 where variation margin is exchanged within two business days of its calculation and the margin period of risk used to calculate initial margin is adjusted accordingly.

This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.