ASX 24 Derivatives Market And SGX-DT Reviews Released

The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko has published the findings of its market operator obligations reviews for the Australian Securities Exchange Limited (ASX 24 derivatives market) and Singapore Exchange Derivatives Trading Limited (SGX-DT dairy derivatives market).

The ASX 24 report covers the two-year period 1 July 2020 to 30 June 2022 while the SGX-DT report covers the period 14 September 2021 (commencement of licence) to 30 June 2022. On 21 November 2021, the New Zealand dairy derivatives contracts were migrated from NZX to SGX-DT.

ASX 24 and SGX-DT are both licensed by the FMA as overseas regulated markets, to allow them to operate derivatives markets in New Zealand.

The reviews did not identify any significant issues with either entity, and the FMA is generally satisfied that ASX 24 and SGX-DT are meeting their general obligations and conditions of their market operator licences. Given these are overseas regulated markets, the FMA’s conclusions were based largely on the Australian Securities & Investments Commission’s (ASIC) oversight of ASX 24 and Monetary Authority of Singapore’s (MAS) oversight of SGX-DT, as the primary regulators.

The FMA is required to report at least once every two years on how well ASX 24 is meeting its licensed market operator obligations and at least annually for SGX-DT. This is the FMA’s fourth review of ASX 24, whose licence came into effect on 1 December 2014, and the first review of SGX-DT, whose licence commenced on 14 September 2021.

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