ASIC hands down final report into ASX
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More news: ASX chair David Clarke said ASIC’s final report was “tough reading” and a “turning point” for the market operator.
Clarke noted ASIC found the ASX’s culture to be “defensive and insular” and it did not spend enough time looking outward.
“Changing culture is harder than changing structures, and it takes longer, but it starts with recognising where we are and what must change,” Clarke said.
The ASX also reconfirmed its capex guidance of between $170 million and $180 million in FY26 and between $160 million and $180 million in FY27. The majority of its spend is for major technology projects under its modernisation plan.
What they said: Outgoing chief executive Helen Lofthouse said: “Confidence will be earned over time through the safe and efficient operation of our infrastructure, disciplined delivery of the CHESS project and clear evidence that we have addressed the barriers to change identified by the ASIC Inquiry”.
ASIC hands down final report into ASX
The news: The ASX needs to “reflect” on its execution of its own market supervision responsibilities to monitor, supervise and enforce compliance, the corporate regulator said in a long-awaited report into the bourse operator.
The context: The Australian Securities and Investments Commission (ASIC) handed down its final report into its inquiry into the ASX on Thursday, which focused on governance, capability and risk management frameworks following years of operational failures.
The final report’s findings were largely consistent with those laid out in the interim report, which was handed down in December. But the final report also found the ASX’s risk management and compliance practices need to mature to become fit-for-purpose and embedded in business processes.
It said the lack of maturity in these practices “contributed to ASX being overly reactive and tactical in its response to incidents and identified gaps”.
In February, the ASX submitted its commitments plan which includes:
- The reset of ASX’s Accelerate, of which ASX has committed to deliver the plan by 30 June;
- The development of a revised technology strategy that is aligned with the refreshed business strategy;
- A capital charge of $150 million in net tangible assets to be implemented by 30 June 2027; and
- A commitment to strengthening governance and independence of its Clearing and Settlement Facility (CS) Boards.
The ASX’s first release of its CHESS replacements project is scheduled for go-live in late April 2026.
What they said: “The further evidence and key observations in this Final Report support the scale of transformational change required at ASX to deliver on its stewardship of critical market infrastructure,” ASIC out-going chair Joe Longo said.
“I thank the Inquiry Panel for its work, which provided a circuit breaker for ASX and a clear path forward to rebuilding trust and confidence in this operator of critical markets infrastructure.”
