In February 2019, the European Commission (EC) and the Monetary Authority of Singapore (MAS) announced they had reached agreement on the mutual recognition of certain derivatives trading venues in the European Union (EU) and Singapore, helping to improve efficiency in cross-border trading between participants in those regions.

This guide describes the practical implications of how cross-border trading will work following this agreement, and sets out the issues that market participants should consider. In particular, it analyzes the effect of mutual recognition on the order flow of trades executed on EU and Singapore venues, and highlights areas where further alignment is necessary.