ASIC launches inquiry into ASX | Australian Markets

The Australian Securities Exchange (ASX) has been positioned beneath intensified scrutiny by the Australian Securities and Investments Commission (ASIC) by way of an inquiry specializing in governance, functionality and risk management.

In doing so it has cited repeated and critical failures on the ASX.

ASIC introduced the inquiry saying it could be led by an professional panel that will make suggestions to deal with any recognized shortcomings or deficiencies.

In asserting the inquiry, ASIC mentioned the  ASX performs a crucial position in Australia’s financial markets and noting that “ASIC and the Reserve Bank of Australia (RBA) have ongoing concerns over ASX’s ability to maintain stable, secure and resilient critical market infrastructure”.

Commenting on the transfer, ASIC Chair Joe Longo mentioned, “ASX operates Australia’s crucial markets infrastructure. Investors and market members should have absolute confidence that ASX is working soundly, securely and successfully.

“ASIC’s decision to initiate an Inquiry follows repeated and serious failures at ASX,” he mentioned. “ASX is ubiquitous, you simply cannot buy and settle on the Australian public equities and futures markets without relying on ASX and its systems.”

“The Inquiry provides an opportunity for ASX to bolster market trust.”

“The Chairs of the ASX entities, members of the Board, and CEO and CRO have assured me ASX will fully cooperate with the Inquiry and ASIC welcomes this cooperation,” Longo mentioned.

ASIC will discontinue its investigation of the 20 December 2024 CHESS Batch Settlement failure. Consideration of this incident will kind half of the broader Inquiry.

While this Inquiry is underway, it’s crucial ASX continues to prioritise the protected and environment friendly operation of its infrastructure, together with progress in direction of Release 1 of the CHESS alternative project in mid-2026.