ASX insider trading allegations surface amid ASIC litigation
The securities regulator was alerted to insider trading allegations involving ASX staff who sold shares before the company’s technology issues were made public.
The Australian Securities and Investments Commission examined whistleblower claims of insider trading by ASX staff who allegedly sold shares in the exchange operator before problems with its bungled technology upgrade were disclosed to the market.
But the regulator declined to fully pursue the matter with a formal investigation because of the perceived difficulty of building a legal case against the accused individuals.
Capital Brief can reveal that the corporate regulator received a tip off that exchange employees had offloaded stock knowing that the company's cornerstone technology project was in serious trouble – long before it was disclosed to the market.
Two sources with direct knowledge of the claims told Capital Brief that the employees allegedly sold the shares in mid-to- late 2021 and early 2022, long before investors were informed about the CHESS problems.
