ASIC has today released the findings of its second assessment on Reuters Transaction Services limited (RTSL) and its first assessment of IMB Ltd’s market and clearing and settlement facilities.

RTSL is licensed to operate the financial market currently known as Reuters Treasury Broking Services (RTBS) in Australia.

ASIC concluded that RTSL has adequate arrangements for the supervision of its market in accordance with its obligations under the Corporations Act.

IMB Ltd is licensed to operate both a market and a clearing and settlement facility for IMB Ltd’s own shares. ASIC found that IMB Ltd has adequate arrangements for operating its market and clearing and settlement facility.

Download the reports or contact the ASIC Infoline on 1300 300 630.

Background

A financial market is defined as a facility through which offers to buy and sell financial product 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. Similarly, anyone who operates a clearing and settlement facility in Australia must obtain a licence unless exempted by the Minister.

As part of the conditions of granting a licence to operate either a financial market or a clearing and settlement facility, the licensee must supervise the market in accordance with Part 7.2 of the Corporations Act, and supervise the clearing and settlement facility in accordance with Part 7.3 of the Act.

Under the Act, ASIC is required to conduct an assessment of how well operators of licensed financial markets and clearing and settlement facilities are complying with their obligations to supervise the facilities’ operations. 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.