ASX Commits to “Transformational” Reforms

Last month, the Australian Securities and Investments Commission (ASIC) announced that the Australian Securities Exchange (ASX) had committed to a “transformational package” of reforms in response to the interim report of the Inquiry into the ASX Group.

ASIC announced the Inquiry in June 2025 following “repeated and serious failures at ASX” and regulatory concerns regarding its ability to “maintain stable, secure and resilient critical market infrastructure,” according to the interim report. Prepared by an expert panel, the report draws on around 140 stakeholder interviews, written submissions, international benchmarking with peer entities, staff focus groups, and a review of nearly 10,000 documents. In so doing, it identifies shortcomings in ASX’s governance, capability, risk management, and culture that require “urgent attention.”

Among other findings, the panel argues that ASX’s focus on short-term financial performance and shareholder returns has compromised its obligations in operating critical national market infrastructure. It also describes a defensive culture that has limited meaningful change. “It is the Panel’s view that ASX in its current state will not resolve the serious shortcomings that have been identified through this Inquiry and there is a need for a fundamental reset,” it writes in the report.

Against that backdrop, ASX has agreed to strengthen the independence and governance of its Clearing and Settlement Facilities Boards. ASX will also reset its “Accelerate” transformation program around clearer milestones and accountability. And ASIC will impose an additional A$150 million capital charge on ASX Limited, to be implemented by 30 June 2027 and held until remediation is complete. In parallel, ASIC and the Reserve Bank of Australia (RBA) will uplift their joint supervisory model for clearing and settlement facilities.

“ASX needs to embrace a new era of accountability, investment, and stewardship to increase confidence, and meet the expectations of the market and the Australian public,” said ASIC Chair Joe Longo. “This package is a circuit-breaker. Many of the problems the report identifies took years to develop, and while there are some immediate actions that will be put in place, the key issues are going to take time and resources to resolve. There are no quick fixes or shortcuts. This reset is about addressing underlying issues, and laying the foundations for a resilient, world-class market operator.”