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ASX Admits Fault in Software Upgrade, Faces A$20.5M Fine
15 Jun
Summary
- ASX admitted misleading statements about a troubled software upgrade.
- The exchange agreed to pay a A$20.5 million penalty to the regulator.
- The revised CHESS clearing system is projected for completion by 2029.
Australia's ASX has acknowledged making misleading statements concerning its difficult software upgrade. The exchange has agreed to pay a A$20.5 million penalty, subject to Federal Court approval, to resolve legal action initiated by the Australian Securities & Investments Commission (ASIC).
ASIC had sued ASX in August 2024, alleging that statements made in 2022 about the previous CHESS project were misleading. The regulator noted that by late 2021, ASX itself had classified the project as 'red', indicating significant delivery risks.
Despite these internal concerns, ASX stated in February 2022 that the replacement project was 'progressing well'. The previous CHESS project was ultimately shelved in November 2022 due to repeated failures and substantial costs.
The first release of the revised CHESS clearing system went live in April and is now projected to be completed by 2029. ASX will also contribute A$3 million towards ASIC's legal costs.
