ASX admits misleading statements about tech upgrade project progress, settles ASIC legal proceedings
The Australian stock exchange operator has admitted issuing three misleading statements about the status of a technology project, settling civil legal proceedings brought by the corporate watchdog.
The Australian stock exchange operator has admitted issuing three misleading statements about the status of a technology project, settling civil legal proceedings brought by the corporate watchdog.
The Australian Securities and Investments Commission launched the action against ASX Ltd in August 2024 after it stated in 2022 that its previous Clearing House Electronic Sub-register System (CHESS) upgrade was “progressing well”.
The project was stopped later that year and Release 1 of the new system was delivered just two months ago.
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By continuing you agree to our Terms and Privacy Policy.ASX will pay a penalty of $20.5 million and contribute $3m to ASIC’s legal costs, with the matter no longer going to trial.
ASX chair David Clarke apologised in a statement to the market on Monday, saying the current CHESS project was “now on firmer footing”.
“When we stopped the CHESS project in November 2022 to reassess our whole approach, that tested market confidence in ASX and and called into question the nature of statements previously made,” Mr Clarke said.
“As the market operator and a steward of critical market infrastructure, our words matter. 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.
“We will continue the reset across the group, informed by the findings of the ASIC inquiry report delivered earlier this year.”
Interim chief executive Darren Yip said clearing services were now being provided on a modern, cloud-aligned platform.
Mr Yip was appointed in late May following the departure of Helen Lofthouse, with former Euronext boss Anthony Attia set to take over from September 1.
