Regulatory Alerts2019-04-12
Added
Clarification on MAS Notice 113 Regarding Securities Borrowing and Lending Activity
The Monetary Authority of Singapore clarifies that MAS Notice 113 applies exclusively to transactions where the primary objective is to borrow or lend securities, excluding those aimed at borrowing cash. The determination of a transaction's objective relies on agreement terms, specifically whether margining is based on the securities borrowed and if mark-to-market requirements apply to the collateral leg. Consequently, transactions structured to borrow cash with securities as collateral fall outside the scope of this notice.
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