TechFlow news, the Australian Securities and Investments Commission (ASIC) has filed proceedings in the Federal Court against ASX Limited, Australia's largest market operator, alleging that it made misleading statements regarding the replacement project for the Clearing House Electronic Subregister System (CHESS). ASIC alleges that ASX's announcement on February 10, 2022, stating the project was "on track" and would be "rolled out" by April 2023, was misleading.
ASIC Chair Joe Longo said ASX's statements touched on core issues of trust concerning market integrity, and may have represented a collective failure by the ASX board and then-executives. Longo emphasized that the CHESS project is critical national infrastructure vital to Australia's economic functioning, and that delays and suspensions have imposed significant costs on ASX and market participants. He noted the project must be managed effectively and transparently, or else risk undermining confidence in Australia as an investment market. ASIC has not yet determined the specific penalties it will seek for ASX's alleged misconduct.
Prior reports indicate ASX has previously paid a A$1.05 million penalty for breaching market integrity rules.
