ASX operator’s shares slip after $23.3m Federal Court penalty
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The news: Shares in ASX dropped slightly in afternoon trade after the market operator was ordered by the Federal Court to pay a total penalty of $23.5 million for making misleading statements regarding its CHESS replacement project.
Shares slid 1.6% to $51.42 at 2:14pm AEST.
The context: The decision follows ASX’s admission that its February 2022 market announcement, stating the CHESS replacement project was “progressing well”, was misleading, exposing market participants to the risk of financial harm. The admission came after the Australian Securities and Investments Commission (ASIC) commenced civil proceedings in 2024.
In her judgement, Justice Markovic said ASX, as a key gatekeeper of Australia’s financial system, should set the benchmark for accuracy and transparency in its market disclosures, given its role in preserving market integrity and confidence.
An ASX spokesperson told Capital Brief the company accepts the findings and “recognises the seriousness of the matter”, adding the judgement notes that ASX did not deliberately intend to mislead the market.
The exchange has since “apologised, accepted responsibility and made new leadership appointments” to establish its CHESS partnership program.
What they said: “It also necessary that the market as a whole understands that misleading announcements made by disclosing entities about their operations will be the subject of significant penalties and there is a need to deter other listed entities from making misleading announcements about the progress of significant projects in which they may be engaging, including where the completion of that project involves third parties,” Markovic said.
The source: ASIC
