The Special Report details ASX’s response plan, including remediation actions and timelines. The Audit Report found that the ASX Special Report met the requirements of the relevant notices issued by ASIC on 21 February 2023, however, it included four recommendations to support the timely, quality delivery of the ASX response plan.
The External Review was published by the ASX on 17 November 2022 and resulted in a pause of the CHESS replacement program while ASX revisited the solution design. It contained 45 recommendations for ASX to implement to deliver the CHESS replacement program in a way that aligned with its objectives.
On 21 February 2023, ASIC issued written notices to the licensees ASX Ltd, ASX Clear Pty Ltd and ASX Settlement Pty Ltd under sections 794B and 823B of the Corporations Act 2001 requiring them to produce a Special Report detailing their response to the findings and recommendations of the External Review, and to have that report audited by Ernst & Young (EY).
The same written notices also required ASX to provide a further special report on the licensee’s Portfolio, Program and Project Management Frameworks by 29 September 2023 and an EY audit report by 31 October 2023.
Together, the reports will assist ASIC in its assessment of whether any further regulatory action is required, including ASIC’s regulatory options, to ensure that ASX Clear and ASX Settlement adhere to the regulatory expectations and comply with its clearing and settlement facility licence obligations.
- ASIC welcomes the establishment of an ASX Advisory Group and the appointment of Alan Cameron AO as Independent Chair
- ASIC acknowledges ASX’s release of the CHESS Special Report and Audit Report
- Further ASIC regulatory response on CHESS Replacement and ASX’s program capabilities
ASIC is Australia’s corporate, markets and financial services regulator.