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The decision follows the agreement between the Commission and the MAS on a common approach regarding certain derivatives trading platforms, set out in a joint EU-MAS announcement on 20 February 2019. A derivative is a financial contract linked to the fluctuation in the price of the underlying asset or basket of assets to which it refers. The EU Markets in Financial Instruments Regulation (MiFIR) sets out that certain liquid derivatives have to be traded on trading venues, to make this trading safer and more transparent. This decision will allow EU investment banks to operate as swap dealers in Asia in compliance with the EU trading obligation and in line with the G20 reforms for standardised derivatives. Valdis Dombrovskis, Vice-President in charge of Financial Stability, Financial Services and Capital Markets Union said: “Our equivalence decision today confirms how global cooperation can bring tangible benefits to EU market participants trading interest rate and credit default derivatives on Singapore's trading platforms, and engaging with local counterparts in Asia, while Singaporean firms will be able to use EU platforms. This will facilitate trade and economic exchanges between the EU and Singapore. I want to thank Deputy Prime Minister Shanmugaratnam and his team for working with us towards this mutually beneficial outcome". In tandem, MAS adopted regulations to exempt certain Multilateral Trading Facilities and Organised Trading Facilities in the EU from the requirements under Singapore rules. This will in turn allow Singapore counterparties to engage with EU counterparties on EU trading venues in compliance with Singapore's derivative trading obligations.