Latest news with #CHESS
9 News
6 days ago
- Business
- 9 News
ASX accused of 'repeated and serious failures' by corporate watchdog
Your web browser is no longer supported. To improve your experience update it here Australian Securities and Investments Commission (ASIC) announced today it will investigate the ASX's risk management, capability and governance standards amid ongoing concerns over its ability to uphold a "stable, secure and resilient critical market infrastructure". ASIC's inquiry will probe a series of technical failures which the regulator believes may have been caused by broader governance issues. ASIC has launched an inquiry into the Australian Securities Exchange (ASX). Pictured: ASX headquarters in Sydney. (Shutterstock) This will include a review of the problematic upgrade of the ASX's CHESS settlement system. CHESS, which stands for Clearing House Electronic Subregister System, is a computer model used by the ASX to record shareholding investments and manage share transactions. ASIC has discontinued its investigation into the December 2024 CHESS Batch Settlement Incident. The incident will now form part of the broader inquiry announced today. ASIC chair Joe Longo said the review is an opportunity for the ASX to "bolster market trust" following a series of "failures". "ASX operates Australia's critical markets infrastructure. Investors and market participants deserve to have absolute confidence that ASX is operating soundly, securely and effectively," Longo said. "ASIC's decision to initiate an inquiry follows repeated and serious failures at ASX. "ASX is ubiquitous, you simply cannot buy and settle on the Australian public equities and futures markets without relying on ASX and its systems." The probe will include a review into the problematic upgrade of the ASX's CHESS settlement system. (Getty) ASIC will convene an expert panel for the review and an update will be announced in the coming weeks. There is no timeframe yet for the completion of the inquiry. ASX chairman David Clarke acknowledged the ASIC inquiry in a statement to the media. "We have been working hard on a transformation strategy with several of the initiatives designed to strengthen culture and capabilities, operational risk management, business resilience and technology resilience, but we acknowledge there have been incidents that have damaged trust in ASX," Clarke said. "We welcome the opportunity for independent parties to review the work underway and advise on what more we can do." finance ASX money Australia national CONTACT US
Perth Now
6 days ago
- Business
- Perth Now
Share market operator probed after 'serious' failures
Australia's corporate watchdog will hold an inquiry into governance and risk management at the Australian Securities Exchange after "repeated and serious" failures. "Investors and market participants deserve to have absolute confidence that ASX is operating soundly, securely and effectively," Australian Securities and Investments Commission chair Joe Longo said in a statement. "ASIC's decision to initiate an Inquiry follows repeated and serious failures at ASX." The incidents included multiple breakdowns of the bourse's decades-old Clearing House Electronic Subregister System (CHESS) settlement system and a breach of market transparency rules in 2022. The bourse operator has also been under pressure from ASIC and co-regulator the Reserve Bank for ASX's lack of progress to modernise CHESS and a scrapped plan to upgrade it with blockchain technology in 2022. An investigation into the failure of the system in December last year will be scrapped and folded in to the broader inquiry. While the probe was underway, it was crucial ASX prioritised the safe and efficient operation of its trading infrastructure, including progress towards the first release of its CHESS replacement project in mid-2026, Mr Longo said. "ASX is ubiquitous, you simply cannot buy and settle on the Australian public equities and futures markets without relying on ASX and its systems," he said. "The Inquiry provides an opportunity for ASX to bolster market trust." The inquiry panel, to be named in the coming weeks, will be asked to examine the frameworks and practices in relation to governance, capability, and risk management within ASX group. The bourse operator's leadership team acknowledged the seriousness of the inquiry and pledged their full co-operation. "We welcome the opportunity for independent parties to review the work underway and advise on what more we can do," ASX chair David Clarke said. "We have been working hard on a transformation strategy with several of the initiatives designed to strengthen culture and capabilities, operational risk management, business resilience and technology resilience, but we acknowledge there have been incidents that have damaged trust in ASX."
Business Times
6 days ago
- Business
- Business Times
Australia's ASX shares slide as regulator launches probe into ‘serious failures'
SHARES of Australian bourse operator ASX dropped on Monday after the country's securities regulator launched an investigation into the company, citing 'repeated and serious' operational failures. Shares of ASX were down 4.4 per cent at A$69.58, as of 0044 GMT, on track for their worst day since March 12, if current losses hold. The stock hit its lowest point since April 23. The Australian Securities and Investments Commission (ASIC) said the probe will focus on ASX's governance, capability, and risk management frameworks, with an expert panel appointed to lead the inquiry, tasked with identifying areas for improvement and recommending corrective measures to address systemic issues. ASIC will publish the outcome of the investigation, including any next steps deemed necessary. The ASIC and the Reserve Bank of Australia have concerns about ASX's ability to provide robust and secure market infrastructure, the regulator said. 'ASIC's decision to initiate an inquiry follows repeated and serious failures at ASX,' said ASIC Chair Joe Longo. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The inquiry provides an opportunity for ASX to bolster market trust,' Longo said. In a separate statement, ASX said it had acknowledged the ASIC initiating a probe into the firm. 'We have been working hard on a transformation strategy ... but we acknowledge there have been incidents that have damaged trust in ASX,' ASX Chairman David Clarke said. The exchange operator has come under fire for problems with its clearing and settlement platform CHESS, which broke down in December. ASIC took ASX to court last year alleging it had made misleading statements related to its CHESS replacement project in 2022. ASX had been looking to replace the CHESS software using blockchain-based technology but abandoned the overhaul in November 2022, six years after it was announced, citing concerns about the product's complexity and scalability. REUTERS
Yahoo
6 days ago
- Business
- Yahoo
Australia's ASIC initiates probe into bourse operator ASX
(Reuters) -Australia's securities regulator said on Monday that it has launched an investigation into Australian bourse operator ASX's governance, capability and risk management practices. The inquiry would be led by an expert panel that will make recommendations to address any identified shortcomings or deficiencies, the Australian Securities and Investments Commission said in its statement. The regulator added that they would publish the outcome of the probe, including the next steps warranted. "ASIC's decision to initiate an Inquiry follows repeated and serious failures at ASX," said ASIC Chair Joe Longo. "The Inquiry provides an opportunity for ASX to bolster market trust," Longo said. In a seperate statement, ASX said it had acknowledged the ASIC initiating a probe into the firm. 'We have been working hard on a transformation we acknowledge there have been incidents that have damaged trust in ASX," ASX Chairman David Clarke said. The exchange operator has come under fire for problems with its clearing and settlement platform CHESS, which broke down in December. ASIC took ASX to court last year alleging it had made misleading statements related to its CHESS replacement project in 2022. ASX had been looking to replace the CHESS software using blockchain-based technology but abandoned the overhaul in November 2022, six years after it was announced, citing concerns about the product's complexity and scalability. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
6 days ago
- Business
- Business Times
Australia's ASIC initiates probe into bourse operator ASX
AUSTRALIA'S securities regulator said on Monday that it has launched an investigation into Australian bourse operator ASX's governance, capability and risk management practices. The inquiry would be led by an expert panel that will make recommendations to address any identified shortcomings or deficiencies, the Australian Securities and Investments Commission said in its statement. The regulator added that they would publish the outcome of the probe, including the next steps warranted. 'ASIC's decision to initiate an Inquiry follows repeated and serious failures at ASX,' said ASIC Chair Joe Longo. 'The Inquiry provides an opportunity for ASX to bolster market trust,' Longo said. In a seperate statement, ASX said it had acknowledged the ASIC initiating a probe into the firm. 'We have been working hard on a transformation we acknowledge there have been incidents that have damaged trust in ASX,' ASX Chairman David Clarke said. The exchange operator has come under fire for problems with its clearing and settlement platform CHESS, which broke down in December. ASIC took ASX to court last year alleging it had made misleading statements related to its CHESS replacement project in 2022. ASX had been looking to replace the CHESS software using blockchain-based technology but abandoned the overhaul in November 2022, six years after it was announced, citing concerns about the product's complexity and scalability. REUTERS
