The Association of Banks in Singapore (ABS), in consultation with the Singapore Foreign Exchange Market Committee (SFEMC) had on June 14, 2013, announced a number of changes to the ABS financial benchmarks in order to enhance the robustness, transparency and efficiency of the benchmark contribution process in Singapore. The changes include the following:

For further information, please refer to the ABS and SFEMC press release, SFEMC statement and related materials.

In order to facilitate a smooth transition to the new rate benchmarks, the SFEMC has made the following recommendations:

1. 1. Where the new or alternative rate benchmark has a tenor that corresponds to the existing benchmark, that it replaces the existing benchmark. Thus (referring to the table below):

2013 Multilateral Amendment Agreement

1. 1. SGD SOR O/N, 1M, 3M and 6M rates will be replaced by the corresponding SGD SOR VWAP O/N, 1M, 3M and 6M rates.
   2. USD SIBOR O/N, 1W, 1M, 2M, 3M, 6M and 12M rates will be replaced by the corresponding USD LIBOR O/N, 1W, 1M, 2M, 3M, 6M and 12M rates.
2. Where the new or alternative rate benchmark does not have a tenor that corresponds to the existing benchmark, but does have longer and shorter tenors, that the linearly interpolated new or alternative rate replace the existing benchmark. Thus (referring to the table above):
   1. SGD SOR 1W rate will be replaced by the linearly interpolated SGD SOR VWAP O/N and 1M rate.
   2. SGD SOR 2M rate will be replaced by the linearly interpolated SGD SOR VWAP 1M and 3M rate.
   3. USD SIBOR 9M rate will be replaced by the linearly interpolated USD LIBOR 6M and 12M rate.
3. For SGD SIBOR, that the discontinued tenors be replaced by the linearly interpolated rate, i.e.:
   1. SGD SIBOR 2M rate will be replaced by the linearly interpolated SGD SIBOR 1M and 3M rate.
   2. SGD SIBOR 9M rate will be replaced by the linearly interpolated SGD SIBOR 6M and 12M rate.

The SFEMC has made no recommendation where the affected rate is the SGD SOR 9M or 12M rates as there is no market standard method of extrapolation. Parties will thus have to bilaterally agree how to deal with such cases.

This Multilateral Amendment Agreement (Rates-MAA) has been published to assist parties wishing to make the amendments referred to above. The Rates-MAA will apply to OTC derivatives and other financial transactions such as repos. In addition, the Rates-MAA will apply to the ISDA English or New York law governed Credit Support Documents. As between any two parties to the Rates-MAA, the relevant transactions or Credit Support Documents between them will be amended only if and to the extent that such transactions or Credit Support Documents have a fixing of an affected rate that is to take place (i) on or after October 1, 2013 and (ii) after the date of discontinuation of the affected rate (i.e. September 30, 2013 for the SGD SOR and SGD SIBOR rate benchmarks and December 31, 2013 for the USD SIBOR rate benchmark).

The Rates-MAA is open to ISDA members and non-members. You need not pay any fee to sign up to the Rates-MAA. Please note that you must sign up to the Rates-MAA no later than 5:00 p.m. Singapore time on September 26, 2013. ISDA will publish on its website the list of parties who have signed up to the Rates-MAA but for ‘Member Only’ access. ISDA will update this list periodically. The list will also be circulated to all parties who have signed up to the Rates-MAA. Please refer to the “Instructions to Signing” attached to the Rates-MAA for more details.