According to Decrypt, the Australian Securities and Investments Commission (ASIC) has appointed a three member expert panel to conduct a comprehensive investigation into the Australian Stock Exchange (ASX), with a focus on reviewing its governance structure and risk management system. This investigation is directly due to the failure of ASX's $163 million blockchain clearing system CHESS replacement project, which was terminated in November 2022 after seven years of development, resulting in a pre tax loss of $170 million.
The investigation team is led by Rob Whitfield, a former executive of West Pacific Bank, and includes several senior professionals in the financial industry. They are required to submit rectification suggestions by March 31, 2026. ASX has previously been sued by ASIC for information disclosure issues related to the project and has paid a fine of $684000 for violating market rules. Analysts point out that the monopoly position leads to low efficiency of ASX, and the failure of blockchain projects further damages investor trust. At present, ASX has completely abandoned blockchain technology and turned to upgrading traditional systems.
