The Australian Securities and Investments Commission (ASIC) has appointed a panel of three seasoned finance experts to investigate the inner workings of the Australian Securities Exchange, including its ill-fated blockchain project. The inquiry, initiated on June 16, was prompted by ongoing concerns raised by ASIC and the Reserve Bank of Australia regarding the exchange's ability to maintain stable and secure market operations. These concerns escalated when ASX abandoned its blockchain-based CHESS settlement engine upgrade in 2022, resulting in a costly overhaul and attracting political scrutiny.
ASIC subsequently took legal action against ASX for making misleading statements about the project. The panel, chaired by Rob Whitfield, a former Westpac chief risk officer and current Commonwealth Bank director, will be joined by Christine Holman, a board member of AGL and Collins Foods, and Guy Debelle, the former deputy governor of the Reserve Bank of Australia. The panel's investigation will encompass ASX's governance, technical capabilities, and risk management systems, with a view to recommending solutions for any weaknesses identified.
Their investigation will cover the entire ASX group, which facilitates trades worth over A$6 billion ($3.92 billion) daily.