Isda AGM Singapore: MAS warns about back-office frailties

Banks must continue to improve their infrastructure for the settlement of derivatives trades to keep pace with developments in the front office, said speakers at the International Swaps and Derivatives Association’s annual general meeting in Singapore today.

“As instruments become more complex and volumes increase, the development of the infrastructure for managing and controlling risk must keep pace," said Teo Swee Lian, deputy managing director of prudential supervision at the Monetary Authority of Singapore. "The challenges we face include not just how to measure and understand market risk, but also how to manage operational and legal risk.”

This concern echoes warnings from the UK Financial Services Authority and the Federal Reserve Bank of New