CANBERRA, April 10 Australia's Financial
Services Minister Bill Shorten approved licences for a new
Australian derivatives market and for clearance and settlements
on Wednesday and said he expected the first trades to take place
in about six months.
Shorten granted the market licence to Financial and Energy
Exchange Global Pty Ltd (FEX), allowing it to set up a market
for energy, commodity and environmental derivatives.
He also approved British clearinghouse LCH.Clearnet Ltd,
controlled by the London Stock exchange, to clear and
settle contracts on the new FEX market, setting up new clearance
competition for the ASX.
"The decision will provide a trading venue to trade
specialised derivative products and provide a greater service
offering to the market," Shorten said in a speech in Beijing and
televised to a Sydney financial markets conference. He gave no
figures on how large the market might become.
He said the licence for LCH.Clearnet would be the first
overseas clearance and settlement licence in the Australian
market and would be the first non-ASX clearing licence for a
He said FEX and LCH.Clearnet will work with Australia's
market regulators and the Reserve Bank of Australia over the
next six months to ensure appropriate controls are in place
before the market starts.