Singapore to establish OTC gold clearing system, introduce central bank gold-vaulting services

The Monetary Authority of Singapore (MAS) will introduce central bank gold-vaulting services by October this year to provide foreign central banks and sovereign entities with a secure option to store their gold reserves, Mr Gan said.

“This strengthens Singapore’s proposition as a jurisdiction where reserve assets can be securely held, actively managed, and connected to wider market liquidity during Asian trading hours,” Mr Gan said.

The SGX is also exploring a physically deliverable gold futures contract that would enhance price discovery and risk management in Loco Singapore, he said. MAS will remove a 5 per cent cap on physical investment precious metals under tax-incentive schemes for eligible funds and family offices.

Mr Gan said that Singapore will align its market practices with relevant global standards, such as the LMBA Good Delivery framework for large bars, as we as well as delivery and settlement standards adopted by major exchanges such as the Chicago Mercantile Exchange and Shanghai Gold Exchange for kilobars.

“Such alignment will reduce friction for participants operating across markets, while preserving flexibility to accommodate differences in market structures,” he added.