<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The national corporate watchdog has launched a sweeping inquiry into the </span><a href="https://www.9news.com.au/asx" rel="" target="_blank" title="Australian Securities Exchange (ASX)"><span>Australian Securities Exchange (ASX)</span></a><span> over what it claims are "repeated and serious failures".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian Securities and Investments Commission (ASIC) announced today it will investigate the ASX's risk management, capability and governance standards amid ongoing concerns over its ability to uphold a "stable, secure and resilient critical market infrastructure".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASIC's inquiry will probe a series of technical failures which the regulator believes may have been caused by broader governance issues.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/israel-iran-conflict-iran-claims-more-than-200-dead-since-friday/9e1adb88-d06f-4ddc-a672-a94efcebdfae" target="_blank"><strong><span>Israel strikes surface-to-surface missile sites in central Iran</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This will include a review of the problematic upgrade of the ASX's CHESS settlement system.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>CHESS, which stands for Clearing House Electronic Subregister System, is a computer model used by the ASX to record shareholding investments and manage share transactions.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASIC has discontinued its investigation into the December 2024 CHESS Batch Settlement Incident.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/corporate-watchdog-asic-launches-inquiry-into-australian-securities-exchange-asx-amid-major-concerns/81123bf9-7aa9-4a3d-bca1-49c16735c760" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The incident will now form part of the broader inquiry announced today.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/cold-front-lower-temperatures-strong-wind-gusts-south-east-australia/97d1e13b-cac7-4a80-9a8b-5b8ddbf7000d" target="_blank"><strong><span>Millions to shiver through multi-day blast of polar winds</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASIC chair Joe Longo said the review is an opportunity for the ASX to "bolster market trust" following a series of "failures".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"ASX operates Australia's critical markets infrastructure. Investors and market participants deserve to have absolute confidence that ASX is operating soundly, securely and effectively," Longo said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"ASIC's decision to initiate an inquiry follows repeated and serious failures at ASX.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"ASX is ubiquitous, you simply cannot buy and settle on the Australian public equities and futures markets without relying on ASX and its systems."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/bali-news-hunt-continues-for-gunmen-who-killed-australian-zivan-radmanovic-and-injured-sanar-ghanim/de2eb951-4297-4704-a460-a97da936e390" target="_blank"><strong><span>Race against time to find gunmen who shot Aussies in Bali</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASIC will convene an expert panel for the review and an update will be announced in the coming weeks.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There is no timeframe yet for the completion of the inquiry.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASX chairman David Clarke acknowledged the ASIC inquiry in a statement to the media.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We have been working hard on a transformation strategy with several of the initiatives designed to strengthen culture and capabilities, operational risk management, business resilience and technology resilience, but we acknowledge there have been incidents that have damaged trust in ASX," Clarke said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We welcome the opportunity for independent parties to review the work underway and advise on what more we can do."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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