media release

IR 06-15 ASIC reports on CME and EBS markets

Published

ASIC has released the findings of its second assessment of Chicago Mercantile Exchange Inc (CME) and its first assessment of EBS Service Company Limited (EBS).

CME is licensed in Australia to operate its financial market known as Globex, an electronic platform for the trading of futures and options on futures contracts. ASIC has concluded that CME has adequate arrangements for the supervision of Globex in accordance with its obligations under the Corporations Act 2001 (the Act).

EBS is licensed in Australia to operate its financial market known as EBS Spot. EBS Spot is an electronic anonymous deal-matching trading system that facilitates trading by participants in spot foreign exchange and precious metals (ie. gold and silver). ASIC has concluded that EBS has adequate arrangements for the supervision of EBS Spot in accordance with its obligations under the Act and has no recommendations to make as a result of this assessment.

Background

A financial market is defined as a facility through which offers to buy and sell financial products are regularly made. Anyone who operates a financial market in Australia must obtain a licence to do so, or otherwise be exempted by the Minister.

As part of the conditions of granting a licence to operate a financial market, the licensee must supervise the market in accordance with Part 7.2 of the Corporations Act.

Under the Act, ASIC is required to conduct an assessment of how well licensed financial markets are complying with their obligations to supervise their markets. ASIC must do this at least once per year in relation to each licensee. ASIC can also assess how well a licensee is complying with its other obligations under the Act.

End of release


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