ASIC today announced it has released a consultation paper proposing new market integrity rules which will apply should Financial and Energy Exchange Limited (FEX) be granted an Australian market licence.

This follows Consultation Paper 149 Application for an Australian market licence: Financial and Energy Exchange Limited, which was released in March 2011. This paper outlined the nature of the proposed FEX market and sought feedback on FEX’s application for a licence to operate an exchange market for energy, commodity and environmental derivatives.

Consultation Paper 157 Proposed ASIC market integrity rules: FEX market (CP 157) proposes market integrity rules for FEX that are substantially similar to the current ASIC Market Integrity Rules (ASX 24 Market) 2010, adopted from the long standing Australian Securities Exchange operating rules.

The consultation paper explains ASIC’s approach to developing market integrity rules for the FEX market and sets out how we propose they would apply to market participants who also need to comply with the ASIC Market Integrity Rules (ASX 24).

Consultation on these rules is a necessary step in progressing FEX’s application. It will help ASIC to advise Minister for Financial Services and Superannuation on the final market integrity rules for the FEX market, should it be determined that a licence be granted.

ASIC is seeking feedback on the market integrity rules proposals in CP 157 by 9 June 2011.

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CP 157  Proposed ASIC market integrity rules: FEX market

CP 149 Application for an Australian market licence: Financial and Energy Exchange Limited