12 To this end, MAS established the industry-led Steering Committee on SOR transition to SORA or SC-STS, in August last year, chaired by Mr Samuel Tsien (Group CEO of OCBC and ABS Chairman). The SC-STS provides strategic direction on developing new SORA-based products and markets, and serves as the key coordinating platform to engage relevant 3/7  BIS central bankers' speeches  stakeholders in support of a smooth transition. Since its formation, the SC-STS and its various Sub-Groups have made significant progress in laying the foundation to support benchmark transition by – establishing market conventions and infrastructure, building liquidity in the SORA derivatives market, conducting pilot test trades in SORA loans and bonds, and engaging market participants and end-customers on the transition. 13 I would like to thank Samuel and the Sub-Group leads for their strong and able leadership, and the great work done thus far. Samuel will be sharing more on the SC-STS transition roadmap later, and will also chart out what needs to be done in the remaining 15 months to end-2021. D Executing a smooth transition to the new landscape 14 A key part of our work in the remaining months to end-2021, is the transitioning of legacy contracts from SOR to SORA. Close to $ trillion notional value of outstanding SGD derivatives contracts referencing SOR, and 8 amounting to $ billion, will around 12,000 SOR contracts in SGD cash markets, mature after end-2021, and will need to transition. 15 Transitioning legacy contracts from SOR to SORA is a complex exercise.
8  BIS Review 36/2005  Chart 1: The Maradona theory of interest rates in 2002 Feb IR  Per cent 8  May IR Aug IR Nov IR  7 6 5 4 3 2 1  2001  2003  2002  2004  0  Note: the black line represents the Bank of England official interest rate. The coloured lines represent the market’s expectations of future interest rates, as calculated in each of the four Inflation Reports published in 2002. Chart 2: Inflation and Unemployment 1993-2005 RPIX inflation (%) 30 25 20 15 10 5 0 -5 0  2 4 6 Une mployme nt (%)  8  10  12  Source: ONS. Note: The unemployment rate used here is the Claimant Count measure.