ASIC has released the findings of its third assessment of Chicago Mercantile Exchange Inc (CME) and its first assessment of Board of Trade of the City of Chicago Inc (CBOT).

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 concluded that CME has adequate arrangements for the supervision of Globex in accordance with its obligations under the Corporations Act and made no recommendations.

CBOT is licensed in Australia to operate its financial market known as e-cbot, an electronic system that facilitates trading by participants in futures and options on futures. ASIC concluded that CBOT has adequate arrangements for the supervision

of e-cbot in accordance with its obligations under the Act and made no recommendations.

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 Corporations 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.

Download the Chicago Mercantile Exchange Inc (CME) annual assessment report

Download the Board of Trade of the City of Chicago Inc (CBOT) annual assessment report