ASIC Launches Inquiry into ASX Over Governance and Risk Management Concerns

Australia''s securities regulator has initiated a sweeping inquiry into the ASX Group, targeting governance lapses and risk management failures at the country''s primary market infrastructure provider. The Australian Securities and Investments Commission (ASIC) will assemble an expert panel to evaluate systemic vulnerabilities following what Chair Joe Longo described as ''repeated and serious failures'' at the exchange operator.

The probe comes amid persistent concerns from both ASIC and the Reserve Bank of Australia about ASX''s ability to maintain resilient trading systems. ''Investors deserve absolute confidence in critical market infrastructure,'' Longo emphasized, noting the exchange''s unavoidable role in equities and derivatives settlement. ASX leadership has pledged full cooperation with the review, which will culminate in published recommendations.

Concurrently, ASIC dropped its investigation into a December 2024 settlement system outage, suggesting regulatory focus has shifted toward structural reforms rather than individual incidents. The inquiry represents a pivotal moment for ASX to restore credibility after operational stumbles in Australia''s rapidly evolving financial landscape.