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ASIC Launches Investigation into ASX’s Governance and Risk Practices

An expert panel will assess repeated breakdowns in ASX’s CHESS system, concluding with public recommendations to strengthen market oversight.

The Australian Securities Exchange ASX logo is seen in Sydney, Australia, February 8, 2018. REUTERS/Daniel Munoz
ASIC chair Joe Longo has launched an investigation into the Australian Securities Exchange.
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Overview

  • ASIC announced on June 15 that it has opened a formal inquiry into the bourse operator’s governance, capability and risk management.
  • The probe was triggered by serious operational failures, including a major breakdown of the CHESS clearing and settlement platform in December 2024.
  • ASX abandoned its six-year blockchain-based CHESS replacement project in November 2022 after encountering complexity and scalability challenges.
  • Last year, ASIC took ASX to court for allegedly making misleading statements related to its blockchain CHESS overhaul.
  • The inquiry’s findings and recommendations will be published, while ASX says it is pursuing a transformation strategy to rebuild market trust.