SEC "No Action" Relief Granted
The Securities and Exchange Commission in the United States (SEC) has granted ASX "No Action" Relief in relation to ASX equity and index options. This is the first time ASX has obtained this type of relief from the US regulator.
What does "No Action" Relief mean?
This relief enables eligible registered broker-dealers and large financial institutions in the United States to deal in ASX exchange traded options (ETOs). In particular, the relief enables ASX and ASX Participants to familiarise these institutional clients with a limited range of ETOs and ASX Participants to accept orders for ETOs from those clients.
"No Action" Relief: In Summary
US Eligible Broker-Dealers and Eligible Institutions may transact in:
1. ETOs over the S&P/ASX 50 Share Price Index, S&P/ASX 200 Share Price Index and the S&P/ASX 200 Property Trusts Sector Index; and
2. ETOs over Financial Products approved by ASX with the exception of low exercise price options, FLEX options and options where a foreign exchange is the primary exchange for the Financial Product.
Approved ETO classes (PDF 110KB)
ASX Participants approved to execute client orders in ETOs (PDF 54KB)
ASX Exchange Traded Options brochure (PDF 273KB)
US broker/dealers and institutions seeking more information and wishing to receive a copy of the ASX Options Disclosure Document should contact ASX at email@example.com
ASX Exchange Traded Options Market
The regulatory approval is expected to generate substantial liquidity from offshore which will further deepen the ETO market. There were 91,000 ETOs traded on average each day on ASX in financial year 2007, valued at AUD15billion.