Superior trading time zone Singapore can become a foreign exchange trading center, which is closely related to its geographical advantages. Singapore is located at the southern mouth of Malacca Strait, which is an important international waterway connecting the Pacific Ocean and the Indian Ocean. As early as the British colonial period, Singapore became an important port for ships travelling between Europe and Asia. After the independence of Singapore in the 20th century, the economy began to develop rapidly, and the prosperous financial industry laid the foundation for the establishment of the Asian dollar market.

With the rapid increase in the trading volume of overseas dollar market centered on London in the 1960s, the international market hopes to have a trading market that can conduct 24-hour trading without the limitation of London trading hours. Singapore has become the first choice of Asian dollar market because of its lonely traffic arteries in Europe, Asia and Africa, superior trading time zone and advantages of 24-hour trading with other parts of the world.

The Asian dollar market was established in the early 1970s.

After Singapore's independence, the foreign exchange trading market was still in its infancy. With the establishment of the Asian dollar market in the early 1970s, Singapore gradually became an international foreign exchange trading center. The so-called Asian dollar market is a market formed by banks in the Asia-Pacific region operating overseas currency lending business.

Although the advantages of Singapore were obvious at that time, Singapore had just become independent in the early 1970s, and its economy was facing many problems. The unemployment rate at that time was as high as 12%. In response, in order to meet the needs of the international economic situation, the Singapore government approved 16 large international banks to set up branches in their own countries. The "Asian currency accounts" and non-resident foreign currency deposits and loans set up by these institutions gradually brought the Asian dollar market to Singapore. Subsequently, Singapore promulgated the Amendment to the Income Tax Law in 1973, which expanded the economic base of Singapore's Asian dollar market and promoted Singapore's growth as an international foreign exchange trading center by reducing the tax rate on foreign currency income, encouraging foreign banks to open branches and relaxing the control over Asian dollar business.

Gradually improve financial market supervision.

With the steady development of Singapore's Asian dollar market, business types are becoming more and more diversified. Singapore's financial services industry has become a vital part of its economy, ranking first in the world not only in foreign exchange transactions, but also in cross-border loans and derivatives transactions in the OTC market. This has enabled Singapore to continuously strengthen the supervision of the financial market. Therefore, in 1970, the Singapore Parliament passed the Singapore Financial Supervisory Authority Act. 197 1 year 1 month, the Financial Supervisory Authority of Singapore (MAS) was established. The Monetary Authority of Singapore (MAS) Act gives the Monetary Authority of Singapore the power to supervise all aspects of money, such as banks and Singapore's financial sector.

In the first half of 20 12, monetary authority of singapore strengthened the supervision of financial derivatives, focusing on unlisted derivatives, including contracts for differences and leveraged foreign exchange investment products. Meanwhile, monetary authority of singapore announced that it would introduce a regulatory framework to prevent financial indicators from being manipulated. Under the regulatory framework, local manipulation of the Singapore dollar interest rate (SIBOR) and the Singapore dollar swap rate (SOR) will violate the Securities and Futures Act (SFA) and will be subject to criminal and civil sanctions.