ASIC Reviews Regulatory Options Amid ASX CHESS Outage
The Australian Securities and Investments Commission (ASIC) is evaluating potential regulatory measures following the failure of ASX's CHESS clearing and settlement system in December 2022.
ASIC expressed disappointment over the incident and its impact on the market. The agency is collaborating with the Reserve Bank of Australia (RBA) and stakeholders to assess the incident's implications and identify areas for improvement.
ASX has announced a rebate of A$1 million to traders affected by settlement delays. ASIC emphasized its expectations for CHESS's ongoing resilience, reliability, integrity, and security.
ASX's plan to replace CHESS with blockchain technology was halted in November 2022 due to concerns about complexity and scalability. The company is currently facing legal action from ASIC for allegedly misleading investors about the progress of the upgrade.