ASIC has released its annual market assessment of EBS Service Company Ltd (EBS).
The report covers the period 1 January 2007 to 31 December 2007.
ASIC has concluded that EBS has:
- adequate arrangements for the supervision of its market in accordance with the obligations under s792A(c) of the Corporations Act 2001; and
- sufficient resources to operate its market properly and for the required supervisory arrangements to be provided under s792A(d) of the Corporations Act 2001.
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.
EBS has been granted an Australian market licence as a domestic market operator.
EBS is currently licensed to operate a market in the following financial products:
- derivatives in foreign exchange and precious metals;
- spot foreign exchange contracts;
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 2001,
Under the Corporations Act 2001, ASIC is required to conduct an assessment of the extent to which 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 Corporations Act 2001.