ASX conflicts of interest point to utility model to settle equities
The collapse of the CHESS replacement project has raised questions about ASX’s capability to manage post-trade functions in the $2.5trn equity market.
James Eyers Senior Reporter
Dec 5, 2022 – 5.00am
The Australian Securities Exchange’s overly ambitious upgrade of the CHESS system that settles trades in the $2.5 trillion equity market is in tatters. Now, questions are flying about whether it is capable of managing critical national economic infrastructure.
Following a humiliating, $250 million writedown last month after a seven-year struggle to deploy experimental blockchain technology to update CHESS, the ASX faces accusations it failed to manage conflicts of interest when it designed the upgrade.
At a hearing of the powerful parliamentary joint committee on corporations and financial services on Monday, policymakers are set to pry into Australia’s vertically integrated market structure.