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CMS license for dealing with Capital Markets Products

CMS license for dealing with Capital Markets Products

Singapore main strength in the business sector is its ability to safeguard its clients’ and investors’ interest. Under the Monetary Authority of Singapore, the country has a stable regulatory framework in charge of all the businesses and how they run. This government’s arm keeps in mind everyone’s welfare hence setting up eco-friendly rules. One of their popular licenses includes the Capital Market Services (CMS) license that deals with capital market products.

What are Capital Markets Products?

This sector is under the Singapore Securities and Future Act. It defines it as all security units in an investment scheme, foreign exchange agreements for trading foreign products, contracts for local market products and the authority that involves these products. The current laws define the Capital Market Products under various classes, including:

  • Shares and stocks issued by a firm or any other body that is not a corporate
  • Shares held under a unit’s ownership
  • Options, permits and rights proposed that affect a corporation or any other body concerning its shares and stocks
  • A business trust’ units
  • All units in a joint investment framework that meets all the conditions set by MAS
  • Agreements that involve foreign exchange currency details between two parties
  • The Capital market products that include other product. In other words, it is a link CMP that can operate independently


Requirements for obtaining the CMS license

The above details give information about some of the general requirements to become part of the CMS license when dealing with Capital Markets Products. In other words, what are the various classes that make a business viable to fall under the CMP category? In this sector, we will talk about some of the things a company must achieve to satisfy the authorities

  1. Brokers’ introduction: For a firm to become part of the Capital Market Products scheme, it needs to deal with securities, collect investment schemes and foreign exchange contracts, and a broker is a corporation that doesn’t have a customer’s rank in the CMPs. It is responsible for carrying out sales for these products. Also, it is accountable for accepting settlement money for the customer’s capital market products. There are various capital requirements when making a contract with a broker or without one.
  2. Trading members: All capital market products require a trading member, which is a corporation credited to foreign exchange services
  3. Trading commodities in various contracts: work under multiple laws depending on the people involved in the transactions. The primary capital requirements depend on the broker or if the trading member is a clearing trading member or a non-clearing trading member.

All these features are considerations a company must keep in mind before applying for the CMS license when operating with the Capital Market Products.


Singapore’s government uses the CMS license to control the operations in the capital market products’ dealings. It is a way to safeguard the firms’ and clients’ finances and assets. If you are thinking of kicking off a business in Singapore that deals with CMPs, then ensure that you apply for the CMS license by the Monetary Authority of Singapore.


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