ASIC's Joe Longo sees ACCC role in ASX oversight after outage
The head of the corporate regulator criticised several aspects of the ASX's response and described the incident overall as “extremely concerning”.
ASIC chair Joe Longo has suggested the competition regulator may have a greater role to play in oversight of the ASX as he criticised the exchange over an outage that disrupted settlement shortly before Christmas.
Longo told Capital Brief the corporate regulator is weighing enforcement options in response to the outage, which involved the ASX's 1990s era CHESS trading system and forced it to delay settlement of trades from Friday 20 December to the following Monday.
ASX published its report on the market failure on Thursday, as it apologised to settlement participants and allocated $1 million for a credit to those who were affected. The company's shares were down 0.9% at 2.26pm after the report's release.
Longo said ASIC was working closely with the Reserve Bank of Australia to investigate “exactly what happened here,” adding that “there’s also a role for the ACCC”.
