ASX to undergo ‘circuit breaker’ reforms

ASIC has obtained commitments from the ASX on a package of reforms including a strategic reset of the ASX’s transformation program.

- Eliza Bavin

The ASX has agreed to a package of reforms aimed at strengthening confidence in Australia’s critical market infrastructure, providing certainty about the market operator’s reset, and responding to the Interim Report released by the panel of the Inquiry into the ASX Group.

ASIC said it obtained commitments from the ASX on reforms including: strengthening the independence and governance of ASX’s Clearing and Settlement (CS) Facilities Boards; 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; and a commitment to stronger leadership.

In addition, ASIC and the Reserve Bank of Australia (RBA) will step up their review to uplift their joint supervisory model.