ASX Under Pressure: Inquiry Deemed Vital for Restoring Market Confidence

June 16, 2025 11:47 AM AEST | By Team Kalkine Media

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ASX Under Pressure: Inquiry Deemed Vital for Restoring Market Confidence — Image source: shutterstock

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Highlights

ASX shares decline as trust questions emerge

Independent review welcomed by leadership

Inquiry seen as key to operational resilience

The operator of the Australian Securities Exchange (ASX:ASX) faced market pressure as its shares declined notably following its acknowledgment of a critical regulatory inquiry. The Australian Securities and Investments Commission (ASIC) has launched a review into the company's governance, risk management practices, and operational capabilities. This move comes after persistent concerns around the exchange’s clearing and settlement services, most notably the failed CHESS replacement project.

As of 10:16am AEST, shares of the exchange had dropped by 3.7% to $70.11. This decline reflects growing investor concern over the long-term credibility of the company’s systems and its ability to deliver on reform promises.

While ASX provided guidance for total expense growth in FY26 and capital expenditure for FY26 and FY27, it stated these projections do not yet incorporate the effects or potential implications of the ongoing inquiry. ASX management has indicated that assessments are underway and committed to updating the market as new developments emerge.

ASX chair David Clarke acknowledged the setbacks the organization has faced, particularly surrounding technology and operational resilience. Clarke emphasized that various strategic initiatives are in progress aimed at bolstering internal capabilities, risk oversight, and business continuity.

“We have been working hard on a transformation strategy,” Clarke stated, highlighting efforts to improve culture and strengthen resilience across operations and technology. He welcomed the ASIC review, viewing it as a valuable opportunity for independent parties to evaluate the effectiveness of the company's initiatives and suggest enhancements.

ASX’s managing director and CEO reinforced this sentiment, describing the inquiry as essential to rebuilding confidence among stakeholders. The company pledged full cooperation to ensure the review delivers actionable and meaningful results.

This latest regulatory action places a spotlight on the importance of robust infrastructure at the heart of Australia’s financial markets. As the inquiry unfolds, stakeholders will be closely monitoring how the company addresses the concerns and implements lasting improvements.

The inquiry could serve as a turning point for the organization, positioning it to rebuild trust through transparency, structural reform, and a renewed focus on system reliability. The coming months will be crucial in determining the pace and effectiveness of that turnaround.

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