SORA is a robust interest rate benchmark underpinned by transactions in a deep and liquid overnight interbank funding market. Such a shi would be aligned to the global direction in other major financial centres, and support continued active participation of global institutions and investors in SGD markets. https://www.mas.gov.sg/news/speeches/2021/pushing-ahead-with-sor-sora-transition-in-2021  1/7  12/02/2021  "Pushing Ahead with SOR-SORA Transition in 2021" - Keynote Speech by Mr Leong Sing Chiong, Deputy Managing Director (Markets …  4 This transition eﬀort was always going to be a complex task, and a strong public-private partnership was needed to address the wide-ranging implications across multiple industry stakeholders, in order to achieve a smooth transition. To this end, the Monetary Authority of Singapore (MAS) established an industry-led Steering Committee (or SC-STS [2] ) to provide strategic direction to develop new products and markets based on SORA and oversee the eﬀective transition from SOR to SORA. 5 Since then, we have made significant strides in developing SORA markets, even while tackling the challenges and disruptions from the ongoing pandemic. In the derivatives space, new market templates were developed to support the trading of SORA derivatives. LCH started the central clearing of SORA derivatives early last year up to the 5Y tenor, while key dealer banks started making markets in SORA derivatives. MAS also launched a daily SORA derivatives auction to facilitate price discovery, and develop SORA Overnight Index Swap (OIS) and SOR-SORA basis curves with prices quoted by dealers and brokers on key market data platforms.

https://www.mas.gov.sg/news/speeches/2021/pushing-ahead-with-sor-sora-transition-in-2021  4/7  12/02/2021  "Pushing Ahead with SOR-SORA Transition in 2021" - Keynote Speech by Mr Leong Sing Chiong, Deputy Managing Director (Markets …  Encouraging active transition 17 Fourth, notwithstanding the possible discontinuation of SOR in mid-2023, we will strongly encourage active transition from SOR to SORA during the second half of this year. This is a specific window where we expect both SOR and SORA markets to continue to be liquid, and transition from SOR to SORA will be the most conducive for market participants. There are two key aspects. 18 On derivatives, key banks remain committed to winding down the bulk of their SOR exposures by end-Q3 2021, as announced by SC-STS last October. This will involve active participation in vendor-provided compression and conversion services, to reduce SOR exposures at an industry level. Broadly speaking, the compression exercises facilitate the multilateral netting or reduction of gross SOR derivatives exposures, while conversion cycles provide a multilateral mechanism for counterparties to convert their SOR derivatives to a SORA reference. This is already in progress. The first SGD compression cycle for this year will be held this week. SC-STS plans to publish an advance calendar of the relevant SOR compression and conversion cycles in 2021, oﬀered by various vendors. SC-STS strongly urges all SOR derivatives participants to utilise these cycles. Having a critical mass of industry participants will enhance the multilateral netting eﬀects and put the industry in a stronger position to meet its wind-down targets.