ABS Code Of Best Practices For Commodity Financing – A Code For Commodity Financing And Beyond

The ABS Code of Best Practices for Commodity Financing (the "Code") was launched on 30 November 2020 by the ABS, with the support of the Monetary Authority of Singapore ("MAS"), Enterprise Singapore, and the Accounting and Corporate Regulatory Authority. As the first of its kind in the commodity trading industry, the Code seeks to provide a set of best practices for commodity financing to rebuild and strengthen Singapore's reputation as a global commodity trading hub. Some of the best practices can also be adopted for other forms of financing.

Background

Following the high-profile collapse of oil trader Hin Leong Trading and the descent of other Singapore-based commodity traders, the commodity trading industry announced in July that it would be launching the Code as one of two initiatives to raise industry standards for commodity financing. It was developed with the support of government agencies and by an industry working group of 28 banks, which represent the