Lending Association

ASX fined over compliance breaches

The ASX has incurred a substantial fine from ASIC, the primary market regulator, for violations of its own regulations.

ASIC revealed Thursday morning that ASX Ltd has paid a A$1.1-million fine after a compliance investigation revealed what appears to be a software problem leading to multiple breaches of disclosure rules over a period of more than three and a half years.

ASIC stated that ASX failed to provide pre-trade transparency information on 8,417 occasions between April 4, 2019, and Dec. 22, 2022, due to an incorrect system configuration. This issue, initially undetected by ASX, was brought to their attention by a market participant.

ASIC Chair Joe Longo emphasized the importance of maintaining confidence in Australia’s market operators, indicating that ASIC will uphold rigorous standards.

ASX CEO Helen Lofthouse acknowledged the seriousness of the matter, reaffirming the importance of pre-trade information availability for market integrity.

This incident comes amid an ongoing ASIC investigation into ASX’s oversight and disclosures related to the CHESS replacement project.