ASIC Launches Comprehensive Investigation into ASX Governance and Risk Management

According to PANews, the Australian Securities and Investments Commission (ASIC) has appointed a three-member expert panel to conduct a thorough investigation into the Australian Securities Exchange (ASX), focusing on its governance structure and risk management systems. This investigation follows the failure of ASX's $163 million blockchain clearing system replacement project, CHESS, which was terminated in November 2022 after seven years of development, resulting in a pre-tax loss of $170 million. The investigation team is led by former Westpac executive Rob Whitfield and includes several seasoned financial industry professionals. They are required to submit recommendations for rectification by March 31, 2026. Previously, ASX faced legal action from ASIC over issues related to information disclosure about the project and paid a fine of $684,000 for violating market rules. Analysts have pointed out that ASX's monopoly status has led to inefficiencies, and the failure of the blockchain project has further eroded investor trust. Currently, ASX has completely abandoned blockchain technology and is focusing on upgrading its traditional systems.