ASX has made ‘limited progress’ to address operational resilience and risk concerns: RBA
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The news: The ASX has made “limited progress” to address the Reserve Bank’s “fundamental concerns” regarding operational resilience and risk management, according to the latest update from the central bank’s payments system board.
The context: At its latest meeting, held once per quarter, the payments system board also flagged that the ASX’s response to a failure of its CHESS batch settlement system in December 2024 and “its aftermath has also demonstrated that ASX must take urgent steps to improve its governance and risk culture”.
Every year, the RBA undertakes an assessment of the ASX clearing and settlement facilities against the Financial Stability Standards.
The latest assessment was endorsed by the Payments System Board on Thursday and will be published after it is provided to the ASX.
The RBA has also reviewed the ASX’s plan to ensure the current CHESS system is adequately operated and maintained. The board noted that while early progress is being made “significant concerns remain”.
They also agreed on “further regulatory steps” aimed at ensuring the ASX’s CHESS replacement program is designed with enough resilience for a piece of critical financial market infrastructure.
The source: RBA Payments System Board media release
