Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013 (2024)

No. S 668

PART I

PRELIMINARY

Citation and commencement

1.These Regulations may be cited as the Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013 and shall come into operation on 31st October 2013.

Definitions

2.—(1)In these Regulations, unless the context otherwise requires—

“booked in Singapore”, in relation to a derivatives contract, means the entry of the derivatives contract on the balance sheet or the profit and loss accounts of a person where—

(a)	the person is a party to the derivatives contract;
(b)	the person’s place of business is in Singapore; and
(c)	the balance sheet or the profit and loss accounts relates to the person’s business in Singapore; [S 153/2018 wef 01/04/2018]

“business day” means any day other than a Saturday, Sunday or public holiday;

“commodity derivatives contract” means a derivatives contract the value of which is determined (whether directly or indirectly, or whether wholly or in part) by reference to, is derived from, or varies by reference to, either of the following:

(a)	the value or amount of one or more commodities;
(b)	fluctuations in the values or amounts of one or more commodities,

but does not include any of the following:

(i)

a debenture;

(ii)

an exchange‑traded derivatives contract;

(iii)

a unit in a collective investment scheme;

(iv)

a derivatives contract with all of the following characteristics:

(A)	the contract is for the sale and purchase of one or more commodities (called in this definition underlying commodities) for the purpose of fulfilling the needs of the day‑to‑day operations of the business of one or more of the parties to the contract, whether or not the contract contains a settlement option;
(B)	subject to any settlement option that may be agreed amongst the parties to the contract, the seller of the underlying commodities is required to deliver the underlying commodities;
(C)	subject to any settlement option that may be agreed amongst the parties to the contract, the buyer of the underlying commodities is required to take delivery of the underlying commodities; [S 153/2018 wef 01/04/2018]

“credit derivatives contract” means a derivatives contract the value of which is determined (whether directly or indirectly, or whether wholly or in part) by reference to, is derived from, or varies by reference to, either of the following:

(a)	the value of a credit instrument or a credit‑linked instrument;
(b)	fluctuations in the value of a credit instrument or a credit‑linked instrument,

but does not include a debenture, an exchange‑traded derivatives contract or a unit in a collective investment scheme;

[S 153/2018 wef 01/04/2018]

“equity derivatives contract” means a derivatives contract the value of which is determined (whether directly or indirectly, or whether wholly or in part) by reference to, is derived from, or varies by reference to, either of the following:

(a)

the value of any of the following:

(i)	any stock or share;
(ii)	a group of stocks or shares;
(iii)	an index of any stocks or shares;
(iv)	a unit in a business trust;
(v)	a unit in a collective investment scheme;

(b)

fluctuations in the value of any item mentioned in paragraph(a)(i) to (v),

but does not include a debenture, an exchange‑traded derivatives contract or a unit in a collective investment scheme;

[S 153/2018 wef 01/04/2018]

“exchange‑traded derivatives contract” means a derivatives contract—

(a)

that is executed on an organised market and is or will be cleared or settled by a clearing facility under an arrangement, process, mechanism or service by which the parties to the derivatives contract substitute or will substitute, through novation or otherwise, the credit of the clearing facility for the credit of the parties to the derivatives contract; and

(b)

the contractual terms (other than price) of which—

(i)	are in the same form as the contractual terms of other derivatives contracts of the same type that are executed on the organised market on which the derivatives contract is executed; and
(ii)	conform to a standard that is provided under the business rules or practices of the organised market on which the derivatives contract is executed,

but does not include any contract under which every contractual term can be negotiated;

[S 153/2018 wef 01/04/2018]

“excluded currency contract” means—

(a)

a forward contract for the sale or purchase of a currency (referred to in this definition as target currency) using another currency (referred to in this definition as the consideration currency) which is intended to be settled by the actual delivery of the target currency and consideration currency—

(i)

in a case where the target currency and the consideration currency are specified in the Sixth Schedule, within 2business days after the date of the execution of the forward contract; or

(ii)

in a case where either the target currency or the consideration currency is not, or both the target currency and the consideration currency are not, specified in the Sixth Schedule, by the earlier of the following:

(A)	the last day of the customary spot settlement period for the target currency or for the consideration currency, whichever is the later;
(B)	the seventh business day after the date of the execution of the forward contract; or

(b)

a forward contract for the sale or purchase of a currency—

(i)

which is entered into for the purpose of settling a sale or purchase of securities denominated in that currency; and

(ii)

which is intended to be settled by the actual delivery of the currency, by the earlier of the following:

(A)	the last day of the customary settlement period for the securities referred to in sub‑paragraph(i);
(B)	the seventh business day after the date of the execution of the forward contract; [S 727/2014 wef 01/11/2014]

“foreign exchange derivatives contract” means a derivatives contract the value of which is determined (whether directly or indirectly, or whether wholly or in part) by reference to, is derived from, or varies by reference to, either of the following:

(a)	the value of one or more currencies or currency indices;
(b)	fluctuations in the value of one or more currencies or currency indices,

but does not include a debenture, an excluded currency contract, an exchange‑traded derivatives contract or a unit in a collective investment scheme;

[S 153/2018 wef 01/04/2018]

“interest rate derivatives contract” means a derivatives contract the value of which is determined (whether directly or indirectly, or whether wholly or in part) by reference to, is derived from, or varies by reference to, either of the following:

(a)	the value of an interest‑bearing financial instrument or an interest rate contract (such as an option on an interest rate futures contract), or interest rates;
(b)	fluctuations in the value of an interest‑bearing financial instrument or an interest rate contract (such as an option on an interest rate futures contract), or interest rates,

but does not include a debenture, an exchange‑traded derivatives contract or a unit in a collective investment scheme;

[S 153/2018 wef 01/04/2018]

“managed assets”, in relation to a holder of a capital markets services licence who is licensed to carry on the business of fund management or real estate investment trust management, means all or any of the following:

(a)

moneys and assets which are—

(i)	contracted by a customer to the holder;
(ii)	drawn down by the holder from a customer’s account; or
(iii)	the subject matter of a contract for fund management or real estate investment trust management by the holder for a customer, where the customer has granted a discretionary authority to the holder;

(b)

moneys and assets which are—

(i)	contracted by a customer to the holder; and
(ii)	the subject matter of a contract for fund management or real estate investment trust management by the holder for a customer, where the customer has granted a non‑discretionary authority to the holder;

(c)

moneys and assets that are under an arrangement under which—

(i)	the moneys and assets are contracted by a customer to the holder; and
(ii)	the holder subcontracts the money and assets to another party such that the money and assets are the subject matter of a contract for fund management or real estate investment trust management by the party for the customer, whether or not the customer has granted a discretionary authority to the holder; [S 153/2018 wef 01/04/2018]

“maturity”, in relation to a derivatives contract, means the period remaining until the termination of the derivatives contract;

“place of business”, in relation to a party to a specified derivatives contract, means a head or main office, a branch, a representative office or any other office of the party;

“quarter” means a period of 3months beginning on 1January, 1April, 1July or 1October of any year;

[S 153/2018 wef 01/04/2018]

“reporting commencement date” means the date from which a specified person must commence reporting any information referred to in regulation7 on a specified derivatives contract in accordance with that regulation;

[S 727/2014 wef 01/11/2014]

“reporting threshold amount” means $8 billion;

“resident in Singapore” has the same meaning as in section2 of the Income Tax Act(Cap.134);

“settlement option”, in relation to a derivatives contract that is a contract for the sale and purchase of one or more commodities, means an option under which the parties to the contract may settle part or all of the amounts owing by one party to the other party by payment of cash instead of delivery of the commodity or commodities, as the case may be;

[S 153/2018 wef 01/04/2018]

“significant derivatives holder” means a person who is a significant derivatives holder by virtue of regulation6;

“traded in Singapore”, in relation to a derivatives contract, means the execution of the derivatives contract by a trader—

(a)

whose place of employment is located in Singapore and who conducts, on behalf of a specified person, activities relating to the execution of derivatives contracts in Singapore; or

(b)

who—

(i)	for a period of not less than 30days immediately before the date of the execution of the derivatives contract, conducts or is authorised to conduct, on behalf of a specified person, activities relating to the execution of derivatives contracts in Singapore; and
(ii)	is physically in Singapore at the time of the execution of the derivatives contract. [S 727/2014 wef 01/11/2014]

(2)Any word or expression used in these Regulations which is defined in section124 of the Act shall, unless the context otherwise requires, have the same meaning as in that section.

Forms

3.—(1)The forms to be used for the purposes of PartVIA of the Act and these Regulations are those set out at the Authority’s Internet website at http://www.mas.gov.sg (under “Regulations and Financial Stability”, “Regulations, Guidance and Licensing”, “Securities, Futures and Fund Management”), and any reference in these Regulations to a numbered form shall be construed as a reference to the current version of the form bearing the corresponding number which is displayed at that website.

(2)Any document required to be lodged with the Authority under any provision of PartVIA of the Act or these Regulations shall be lodged in the relevant form specified in the website referred to in paragraph(1), and in such manner as the Authority may specify from time to time.

(3)All forms used for the purposes of PartVIA of the Act and these Regulations shall be completed in the English language and in accordance with such directions as may be specified in the form or by the Authority.

(4)The Authority may refuse to accept any form if it is not completed in accordance with this regulation.

(5)Where strict compliance with any form is not possible, the Authority may allow for the necessary modifications to be made to that form, or for the requirements of that form to be complied with in such other manner as the Authority thinks fit.

Keeping of books and other information

4.Every specified person shall ensure that all relevant books, and all transaction information and other information as may be required by the Authority for the purposes of the Act, are kept—

(a)	in the case of any relevant book, until at least 5years after the last date of the expiry or termination of a contract, an agreement or a transaction to which the book relates; or
(b)	in the case of any transaction information or other information, until at least 5years after the date of the expiry or termination of the contract, agreement or transaction to which the information relates.

I'm well-versed in financial regulations, particularly those pertaining to securities and derivatives contracts. The excerpt you provided seems to be a segment of regulatory text detailing the Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013. Let's break down the key concepts and definitions outlined in the article:

Booked in Singapore: This term defines when a derivatives contract is entered into the balance sheet or profit and loss accounts of a person with a business in Singapore, and the contract pertains to their Singaporean operations.
Business day: Refers to any day that is not a Saturday, Sunday, or public holiday.
Commodity derivatives contract: A contract whose value is determined by or derived from the value of one or more commodities or fluctuations in their values, with exceptions outlined in the definition.
Credit derivatives contract: A contract whose value is determined by or derived from the value of a credit instrument or fluctuations in its value, with certain exclusions.
Equity derivatives contract: A contract whose value is determined by or derived from the value of stocks, shares, indices, or other equity-related assets, with exclusions similar to credit and commodity derivatives contracts.
Exchange-traded derivatives contract: Refers to a derivatives contract executed on an organized market and cleared or settled by a clearing facility, meeting certain standardization criteria.
Excluded currency contract: A forward contract for the sale or purchase of currency intended to be settled by actual delivery within a specified period.
Foreign exchange derivatives contract: A contract whose value is determined by or derived from one or more currencies or currency indices, excluding certain specified contracts.
Interest rate derivatives contract: A contract whose value is determined by or derived from interest rates or interest-bearing financial instruments, with exclusions similar to other types of derivatives contracts.
Managed assets: Pertains to assets managed by holders of capital markets services licenses for fund management or real estate investment trust management, encompassing both discretionary and non-discretionary authority arrangements.
Maturity: Refers to the remaining period until the termination of a derivatives contract.
Reporting commencement date: The date from which a specified person must begin reporting information on a specified derivatives contract.
Reporting threshold amount: A specified monetary threshold triggering reporting requirements.
Resident in Singapore: Has the same meaning as defined in the Income Tax Act of Singapore.
Traded in Singapore: Refers to the execution of derivatives contracts by traders physically located in Singapore or conducting authorized activities in Singapore.
Forms: Specifies the forms to be used for regulatory purposes and the manner of lodging documents with the regulatory authority.
Keeping of books and other information: Mandates specified persons to maintain relevant books and transaction information for a minimum period after the expiry or termination of relevant contracts or agreements.

These regulations aim to ensure transparency and accountability in the trading of derivatives contracts, providing a framework for reporting and record-keeping to regulatory authorities.

Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013 (2024)

References