ASIC has released its annual market assessment (Report 149) of Mercari Pty Ltd (Mercari).

ASIC has concluded that Mercari has adequate arrangements for the supervision of its market in accordance with the obligations under s792A(c) of the Corporations Act 2001 (the Corporations Act).

Mercari’s is licensed to operate a market, which facilitates trading in foreign exchange derivatives and interest rate derivatives.

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. Mercari has been granted an Australian market licence as a domestic authorised market.

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 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.