ASX's Unique Listing Model Under Regulatory Spotlight Amid Calls for Reform

June 16, 2025 01:05 PM AEST | By Team Kalkine Media

ASX's Unique Listing Model Under Regulatory Spotlight Amid Calls for Reform — Image source: Shutterstock

ASIC's Reform Signals

Joe Longo, Chair of ASIC, announced during a media call that the review is intended to be “holistic” and led by an independent expert panel. It will cover the ASX’s governance, internal culture, and operational structure. Longo pointed out that the ASX’s role as a monopoly operator in Australia, combined with its self-listing, creates an unusual framework that warrants reevaluation.

The listing of the ASX on its own platform, a structure rarely seen globally, stems from historical decisions that have increasingly come under question. Longo acknowledged this uniqueness, describing it as “a series of historical decisions” and hinting that reform could be necessary to ensure the exchange meets modern governance and accountability standards.

Monopoly Concerns and Governance Scrutiny

Longo emphasized that while past actions can't be undone, future outcomes can be shaped to better align with the public interest. "We have essentially a monopoly,” he noted, underlining how this distinctive setup may pose challenges for transparency and competitiveness. The ASX’s status as both the marketplace and a market participant creates the potential for conflicts that ASIC aims to address.

This regulatory spotlight arrives amid broader global trends of enhancing market operator accountability and increasing separation between oversight and operational interests.

What to Expect from the Review

ASIC's review, driven by an intent to identify the root causes of longstanding concerns, will focus on the ASX's operational resilience, risk management systems, and decision-making culture. The intention is not to prescribe change prematurely, but to allow the expert panel to assess whether reforms—particularly structural ones—are necessary.

The inquiry’s findings could prompt discussions on separating the ASX’s listing from its operational responsibilities, a move that could bring Australia closer in line with international standards and improve stakeholder confidence in its capital markets.

As the review unfolds, stakeholders across the financial ecosystem will be watching closely for signs of meaningful reform at one of Australia's most critical financial institutions.

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