SINGAPORE (Sept 13): The US Commodity Futures Trading Commission (CFTC) and the Monetary Authority of Singapore (MAS) on Thursday signed an arrangement to foster greater cooperation in fintech.

The arrangement supports both authorities’ efforts to facilitate fintech development and innovation in their respective markets. This arrangement is the CFTC’s second fintech cooperation arrangement with a non-US authority and its first with an authority in Asia.

The Cooperation Arrangement on Financial Technology Innovation (fintech arrangement) focuses on information sharing on fintech market trends and developments. This includes sharing insights derived from each authority’s relevant fintech sandbox, proofs of concept, and innovation competitions.

The fintech arrangement also facilitates referrals of fintech companies interested in entering the other’s market. This will help fintech companies better understand and navigate the regulatory regime and capitalise on opportunities in each jurisdiction.

“I am delighted to join Ravi Menon in signing this arrangement to demonstrate our mutual commitment to facilitate market-enhancing innovation and share best practices in FinTech engagement,” says CFTC Chairman J. Christopher Giancarlo.

Ravi Menon, Managing Director, MAS, says, “We have seen increasing interest from fintech firms in the US to expand to Asia. Through this cooperation arrangement, we hope to create more opportunities for firms in both jurisdictions, especially in developing innovative business models for the derivatives market. I am also delighted that CFTC will participate in the Singapore FinTech Festival 2018, and contribute to the discussions on applied technologies in capital markets.”