ASIC has obtained commitments from ASX Group (ASX) on a package of reforms including:
- Strengthening the independence and governance of ASX's Clearing and Settlement Facilities Boards
- A strategic reset of ASX's transformation program 'Accelerate', with clear milestones and accountability for delivery
- The imposition of an additional $150 million capital charge on ASX Limited to ensure ASX maintains robust financial resources until remediation is complete
- A commitment to stronger leadership
In addition, ASIC and the RBA will step up their review to uplift their joint supervisory model.
The package will strengthen confidence in ASX and Australia's critical market infrastructure, provides certainty about the market operator's reset, and responds to the Interim Report released today by the panel of the Inquiry into the ASX Group.
The Inquiry, announced in June 2025 and led by an expert panel, has identified shortcomings in ASX's governance, capability, risk management and culture that required urgent attention and response. Due to the urgency of the reset required, the insights of the Report were shared with ASIC, and ASIC engaged with ASX.
The report finds that, while some progress has been made, more of the same is not an option. The scale of transformation required is significant and cannot be achieved through current tactical, incremental measures or business as usual.
ASIC Chair Joe Longo said urgent action was needed to set ASX on the right path.
'ASX needs to embrace a new era of accountability, investment, and stewardship to increase confidence, and meet the expectations of the market and the Australian public.
'This package is a circuit-breaker.
'Many of the problems the report identifies took years to develop, and while there are some immediate actions that will be put in place, the key issues are going to take time and resources to resolve. There are no quick fixes or shortcuts.
'This reset is about addressing underlying issues, and laying the foundations for a resilient, world-class market operator.
'This should be a clear signal to the market that ASX are committed to delivering the transformation necessary for resilient and future-ready national market infrastructure.'
Interim Report findings
The Inquiry Panel has so far conducted around 140 stakeholder interviews, reviewed written submissions, undertaken international benchmarking with similar entities, held focus groups with ASX staff, and reviewed nearly 10,000 documents.
Key findings of the Interim Report include that:
- ASX's focus on short-term financial performance and shareholder returns has compromised its obligations to operate critical national market infrastructure
- ASX's strategy lacks the vision necessary for the critical role it plays
- The organisation's culture is defensive, which limits its ability to deliver meaningful change
- ASX's governance structures do not ensure the independence of its Clearing and Settlement subsidiaries and their required levels of investment
- Existing supervisory practices have not achieved the desired outcomes.
Pathway forward
In response to the issues raised by the Panel, ASIC has proposed a series of actions to which ASX has agreed that are detailed in the ASIC and ASX letter.
Key features of ASX's commitments include ensuring the Clearing and Settlement (CS) Facility Boards have the right capability, resources and 'voice' to deliver on their duties. That means seeing the Boards of the CS Facility Licensees composed of directors who are not directors of an ASX Group company other than the CS Facility Licensees, and the development and implementation of robust, service-level standards for intra-group services provided to CS Facilities.
ASX's 'Accelerate' program will be reset with new targets and benchmarking agreed to by ASIC and the RBA, to provide clarity about the purpose of the ASX first and foremost as a critical market infrastructure provider.
A capital charge of $150 million will be implemented by 30 June 2027, and held until the agreed work in the new Accelerate program is completed to ASIC's satisfaction. ASIC will also review its regulatory guidance for market licensees' financial resource requirements.
In addition to ASX's actions, ASIC and the RBA have also committed to step up their review to uplift the joint supervisory model for the CS Facilities.
Mr Longo said, 'ASIC will ensure ASX's commitments are delivered in full. We are determined to see lasting change that restores trust and confidence in the ASX and the integrity of Australia's financial markets.
'I want to thank the Inquiry Panel for their work to date on this comprehensive review, and their help to outline a path to ensuring the ASX delivers the reliable and future-proof market infrastructure Australia needs.'
The Final Report of the Inquiry is due to be delivered to ASIC by 31 March 2026.
