RBA Keeps Pressure on ASX Over Clearing Shortcomings
The Reserve Bank of Australia (RBA) has expressed continued pressure on the Australian Securities Exchange (ASX), citing shortcomings in its clearing and settlement facilities. According to the RBA's assessment, despite progress made during the year, ASX still fails to meet expectations in several key areas.
The RBA highlighted specific issues with governance and risk management, including credit and operational risks. Austraclear, ASX's debt securities settlement facility, was rated 'partly observed' against operational risk standards.
Assistant Governor Brad Jones stated that ASX is undergoing a period of substantial organisational change in response to several long-running issues.
The RBA will maintain heightened supervisory scrutiny during the next assessment period, focusing on areas where improvements are needed, including governance and independence of clearing and settlement facilities, as well as operational and cyber resilience.