Australia's corporate regulator bans ASX Ltd on Thursday ASX  The report comes after the exchange operator failed to try to replace its ...

Australia mandates ASX to develop robust software replacement response plan



Australia's corporate regulator bans ASX Ltd on Thursday

ASX

 The report comes after the exchange operator failed to try to replace its aging software and said it was considering further intervention.


The ASX's 30-year-old trading platform was widely seen as in need of improvement following a number of outages, including an incident in November 2020 when a problem on the day the new equity trading platform went live disrupted trading for 20 minutes.


The unprecedented measures on Thursday, in coordination with the Reserve Bank of Australia (RBA), are the first time the Australian Securities and Investments Commission (ASIC) has exercised its powers over market operators.


"This is important not only for the industry, but also for the Australian economy and investors," ASIC chairman Joe Longo said.


Meanwhile, the Reserve Bank of Australia has given the ASX until June 30 next year to publicly respond to 45 recommendations from its independent rating agency, Accenture, along with a timetable. It also requires the ASX to publicly commit that it has sufficient resources to support the replacement software before it goes live.


"ASIC will take all available regulatory measures to ensure that these expectations are met," the regulators said in a joint statement, adding that they would consider and take additional steps to ensure the ASX met their expectations.


ASX said it would "actively and transparently work with the regulator ... on this work".


($1 = 1.4577 Australian dollars)