ASIC today published its third assessment report about the market operated in Australia by ICAP Europe Limited (IEL).
ASIC has concluded that IEL, which operated a financial market in forward rate agreements, as described on its licence, had adequate arrangements for the supervision of its market in accordance with its obligations under the Act during the reporting period.
IEL decided to discontinue the operation of this market in November 2006.
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.