ASIC Launches Inquiry Into ASX Over Repeated Serious Failures

The Australian Securities and Investments Commission (ASIC) has launched an inquiry into the Australian Securities Exchange (ASX) following repeated and serious failures in maintaining critical market infrastructure, particularly related to the troubled CHESS settlement system. This inquiry, led by an expert panel including representatives from the Reserve Bank of Australia (RBA), the Australian Prudential Regulation Authority, and the Australian Competition and Consumer Commission, will examine ASX's governance, risk management, organizational structure, and response to internal and external concerns. The move comes after the RBA downgraded its assessment of ASX’s clearing and settlement systems due to operational risks, and follows a significant CHESS batch settlement failure in December 2024. ASIC has discontinued its separate investigation into that specific failure, incorporating it instead into the broader inquiry, which aims to restore trust in ASX’s ability to operate securely and effectively as the sole provider of equity market settlement services in Australia. ASX leadership has pledged full cooperation with the inquiry, which will also evaluate the adequacy of ongoing reform initiatives, including the CHESS replacement project targeted for release in mid-2026. The inquiry represents a critical step to ensure ASX's stability and resilience in managing Australia’s critical market infrastructure.