ASIC and RBA formalise pressure on ASX over CHESS

Mike Taylor

Managing Editor/Publisher, Financial Newswire

15 December 2022

The Australian Securities Exchange (ASX) has reacted to actions by the Australian Securities and Investments Commission (ASIC) and the Reserve Bank by further undertaking to maintain the existing CHESS regime until a replacement is found.

The ASX issued a statement immediately after both the RBA and ASIC broke new ground by using their delegated powers to impose requirements on the ASX regarding CHESS while a new clearing and settlements regime is developed.

ASIC also declared that it was continuing to consider what further regulatory action it might take to ensure “the adequate functional development, support and maintenance of CHESS” and to ensure that the CHESS Replacement “will meet all functional and non-functional requirements and will enable new functional developments without undue risk and impact to participants in future”.

ASIC has required the ASX to prepare a special report about arrangements for CHESS and the ASX has undertaken to engage “transparently and constructively with the regulatory agencies”.