ASX agrees to change in line with RBA recommendations
09 October 2023 Australia
Image: StudioProX
The Australian Securities Exchange (ASX) has announced that it will implement all recommendations from the Reserve Bank of Australia’s (RBA’s) 2023 Financial Stability Standards assessment.
The assessment analysed ASX’s clearing and settlement facilities from 1 July 2022 to 30 June 2023. It coincided within the timeframe in which ASX agreed to reassess its CHESS replacement project and revisit the solution design.
During this time, ASX also initiated its board renewal programme, undertook significant executive management change, launched a five-year strategy and expanded business investment, underpinned by revised capital management settings.
The assessment required the ASX to place high priority on recommendations related to board process, internal audit, stakeholder management and the management of ageing technology assets, including CHESS.
The assessment recognised ASX had made improvements to its regulatory reporting and acknowledged that new leadership has driven improved engagement with the RBA, a greater level of transparency and improved executive accountability.
The RBA noted: “Under the leadership of a new CEO, the Bank has observed improved engagement and an increased commitment to transparency in ASX’s dealings with the Bank.”
ASX chair Damian Roche says: “We accept the RBA’s recommendations in full and acknowledge there’s continued work to do. Many of the concerns outlined by the RBA have already been in focus for ASX, and while some items are well progressed, ASX will now incorporate the work from the new recommendations.
Helen Lofthouse, CEO and managing director of ASX, comments: “This assessment aligns with the view of the ASX Board and I that we are not where we want to be in some key areas. We are making changes to remediate issues and strengthen our overall capability, although we recognise it will take time for these changes to be fully embedded.
“There is certainly more work to do, but we are clear on the path ahead and I’m confident the actions we’re taking will continue to build on the foundations of an enduring and high quality business.”
The assessment analysed ASX’s clearing and settlement facilities from 1 July 2022 to 30 June 2023. It coincided within the timeframe in which ASX agreed to reassess its CHESS replacement project and revisit the solution design.
During this time, ASX also initiated its board renewal programme, undertook significant executive management change, launched a five-year strategy and expanded business investment, underpinned by revised capital management settings.
The assessment required the ASX to place high priority on recommendations related to board process, internal audit, stakeholder management and the management of ageing technology assets, including CHESS.
The assessment recognised ASX had made improvements to its regulatory reporting and acknowledged that new leadership has driven improved engagement with the RBA, a greater level of transparency and improved executive accountability.
The RBA noted: “Under the leadership of a new CEO, the Bank has observed improved engagement and an increased commitment to transparency in ASX’s dealings with the Bank.”
ASX chair Damian Roche says: “We accept the RBA’s recommendations in full and acknowledge there’s continued work to do. Many of the concerns outlined by the RBA have already been in focus for ASX, and while some items are well progressed, ASX will now incorporate the work from the new recommendations.
Helen Lofthouse, CEO and managing director of ASX, comments: “This assessment aligns with the view of the ASX Board and I that we are not where we want to be in some key areas. We are making changes to remediate issues and strengthen our overall capability, although we recognise it will take time for these changes to be fully embedded.
“There is certainly more work to do, but we are clear on the path ahead and I’m confident the actions we’re taking will continue to build on the foundations of an enduring and high quality business.”
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