ASIC today released a consultation paper and proposed regulatory guidance on criteria for exemption from Australian financial market licence provisions for professional markets.

The proposed regulatory guidance, Exempt professional financial markets, is designed to inform industry and their advisors of the circumstances where ASIC may advise the Minister to exempt a market from the operation of the financial markets regime.

ASIC will recommend exemptions for markets where all of the following defining characteristics are present:

• users are professional investors;
• products are not usually traded on public markets (e.g. excluding shares);
• trading is not anonymous; and
• the operator does not also operate a clearing and settlement facility for the market.

ASIC is seeking stakeholder feedback on the proposals. The consultation period on the proposed regulatory guidance closes on 19 October 2009.

Further information is available at ASIC.