ABS Benchmarks Administration (ABS Co) – a fully owned subsidiary of the Association of Banks in Singapore (ABS) – on Thursday said it will start charging fees for the usage of Singapore Interbank Offered Rate (SIBOR) and Swap Offer Rate (SOR) data for pricing and valuation activities beginning 1 October.
In a statement dated 25 June, the firm said it will start charging US$1,500 (S$2,000) per month per subscriber for the SIBOR and SOR data beginning October this year. The fees are going to be implemented in line with global development on benchmark data usage, it said, adding that users who receive real-time SIBOR and SOR data will have to shell out $5 monthly end-user fees.
According to the ABS, ABS Co was setup specifically to own and administer the financial benchmarks in Singapore, including the SIBOR and SOR.
Ong-Ang Ai Boon, Director, ABS Co, said: “There is increasing work, oversight and investment needed to strengthen the robustness, transparency and efficiency of the benchmark contribution process in Singapore. We will continue to ensure that the governance processes of our Benchmarks remain robust and acceptable to all market participants.”
However, ABS clarified that SIBOR and SOR data delayed by at least 24 hours will remain available for free.
SIBOR and SOR are key benchmark rates where most home mortgages are pegged at and are widely used to measure costs of funds. According to ABS, SIBOR panel banks – including the three local banks and major foreign banks in Singapore – will be exempt from usage and end-user fees for SIBOR.