ASX's Post-Trade Infrastructure Fails to Meet RBA Expectations

The Reserve Bank of Australia (RBA) has assessed the Australian Securities Exchange's (ASX) clearing and settlement facilities, finding that ASX still falls short in several areas.

The RBA's Assessment of ASX Clearing and Settlement Facilities found that one or more of ASX's four facilities 'partly observed' standards in four key areas: governance, framework for comprehensive management of risks, credit risk, and operational risk.

This is not the first time ASX has been criticized by the RBA. In December 2024, ASX experienced a CHESS batch settlement incident, which led to an upgrade from 'not observed' to 'partly observed' on operational risk in its latest assessment.

The RBA sees ASX's Transformation Portfolio as a potential pathway to meeting the standards expected of it. This program focuses on governance, capability, culture, and risk management, addressing the root causes of technical failures that often have organisational roots.