Australia

Regulators Launch Inquiry Into Australian Securities Exchange After Tech Failures

Published JUN 16 2025

Story

Above: Stock information at the Australian Securities Exchange (ASX) in Sydney, Australia, on May 5, 2025. Image credit: Brendon Thorne/Bloomberg/Getty Images

The Facts

The Australian Securities and Investments Commission (ASIC) launched an inquiry into the Australian Securities Exchange (ASX) group on Monday, focusing on governance, capability and risk management frameworks following claims of repeated operational failures.
9News
Wsj
ASX stock price dropped approximately 6-7% following the announcement of the regulatory inquiry. The exchange represents 79.6% of total dollar turnover in equity market products in Australia, with ASIC Chair Joe Longo saying that the market relies "on ASX and its systems."
ASIC
Global Trading
The inquiry stems from events including a full-day trading outage in November 2020, a December 2024 CHESS batch settlement failure, and capacity issues during COVID-19 that reduced trading volumes. Longo stated the decision follows "repeated and serious failures at ASX."
Reuters
ASIC
ASX abandoned its blockchain-based CHESS replacement project in 2022 after six years of development and malfunctions. The exchange subsequently hired Tata Consultancy Services in 2023 to begin a staged upgrade with the first release scheduled for mid-2026 at an estimated cost of AU$105-125 million ($68.7-81.7 million).
Financemagnates
TradingView
ASIC discontinued its separate investigation into the December 2024 CHESS settlement failure, incorporating it into the broader inquiry announced Monday. The regulator previously sued ASX in 2024 over allegedly "deceptive and misleading" statements about the progress of its systems upgrade project.
Reuters
www.ft.com
ASIC
ASX Chairman David Clarke pledged full cooperation with the inquiry while referencing the company's transformation strategy. The exchange operator admitted there have been "incidents that have damaged trust in ASX" but emphasized ongoing efforts to strengthen operational capabilities and technology resilience.
www.ft.com
Global Trading

Sources Split

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RIGHT

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The Spin

Narrative A

This inquiry is long overdue given ASX's track record of system failures and broken promises. The exchange has repeatedly let down investors with botched technology upgrades and operational outages that undermine confidence in Australia's financial markets. ASIC's action sends a clear message that critical infrastructure operators can't continue failing without consequences.

Australian Financial Review

ASIC

Narrative B

ASX deserves credit for acknowledging its shortcomings and implementing a comprehensive transformation strategy since 2023. The exchange is investing heavily in modernizing critical infrastructure while maintaining operations, which is no small feat. This inquiry provides an opportunity for independent validation of the progress being made.