The Australian Securities and Investments Commission (ASIC) has recently completed an assessment of the licensed financial market, Eurex Frankfurt AG (EFAG).

ASIC is required, under the Corporations Act 2001 (the Act), to conduct an annual assessment of how well licensed financial markets are complying with their obligations to supervise their markets. This is the first assessment ASIC has completed in relation to EFAG.

EFAG is a foreign entity that operates a licensed financial market that is a futures and options exchange, and it is known as Eurex Deutschland. EFAG’s principal place of business is in Germany and the market is regulated under German law. EFAG holds what is known as an ‘overseas market licence’ which enables it to operate its market in Australia.

ASIC has concluded that EFAG has adequate arrangements for the supervision of their market in accordance with their obligations under the Act.

‘We have made some recommendations about the need for improvement in EFAG’s statutory reporting obligations’, ASIC’s Director, Markets Regulation, Ms Tracey Lyons said.

‘We have also discussed these issues, which are largely procedural, with EFAG and we are confident they will comply in a more timely way in the future’, Ms Lyons said.

The assessment report is available from the ASIC website at www.asic.gov.au or by contacting the ASIC Infoline on 1300 300 630.