ASX to pay $23.5m over misleading CHESS statements
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The news: The ASX will pay a $20.5 million penalty and $3 million in legal fees after the stock exchange operator admitted it had contravened the law in relation to its CHESS projects in 2022.
The context: This follows a civil proceeding brought by the Australian Securities and Investments Commission (ASIC) in 2024 against the ASX, which alleged that the bourse had made misleading statements regarding the CHESS replacement project by representing that it was “progressing well”.
However, the project was no longer on track for its initially planned go-live date in April 2023, having been internally classified as “red” due to significant unresolved risks.
What they said: “As the market operator and a steward of critical market infrastructure, our words matter,” ASX chair David Clarke said.
“I am sorry ASX fell short. We recognise the impact this has on trust and confidence, and we take responsibility for the lessons that must be learned from that experience,” he added.
The source: ASX
