ASX confirms submission of commitments plan to ASIC
TL;DR
ASX has submitted a commitments plan to ASIC, addressing governance, operational, and financial reforms from an inquiry. Key measures include board restructuring, a revised transformation program, and a $150 million capital charge to enhance market resilience. ASIC emphasizes the need for long-term stewardship to resolve systemic issues.
ASX confirms submission of commitments plan to ASIC
ASX Submits Commitments Plan to ASIC in Response to Inquiry Findings
The Australian Securities Exchange (ASX) has confirmed submission of a comprehensive commitments plan to the Australian Securities and Investments Commission (ASIC), addressing governance, operational, and financial reforms outlined in the ASX Inquiry's interim report. The plan, endorsed by ASIC, includes measures to strengthen market infrastructure resilience and restore investor confidence.
Key commitments from ASX include: 1. Governance Reforms: Restructuring the Clearing and Settlement (CS) Facilities Boards to ensure independence, with directors not affiliated with broader ASX Group companies (excluding CS subsidiaries). This aims to enhance decision-making autonomy and accountability. 2. Strategic Reset: A revised "Accelerate" transformation program, aligned with ASIC and the Reserve Bank of Australia (RBA), featuring clear milestones and benchmarking to prioritize ASX's role as a critical market infrastructure provider. 3. Financial Safeguards: An additional $150 million capital charge on ASX Limited, effective by 30 June 2027, to maintain financial resilience during remediation. The charge will remain until ASIC confirms completion of the Accelerate program.
ASIC Chair Joe Longo emphasized the urgency of the reforms, stating that ASX must shift from a short-term profit focus to a long-term stewardship model. "This package is a circuit-breaker," he said, noting that systemic issues identified in the Inquiry—such as governance weaknesses, cultural inertia, and inadequate risk management—require sustained effort to resolve.
The Inquiry, launched in June 2025, found that ASX's defensive culture and misaligned incentives had compromised its obligations as a market infrastructure operator. Over 140 stakeholder interviews and 10,000 documents were reviewed to inform the findings.
ASIC and the RBA will also enhance their joint supervisory model for CS Facilities, ensuring stricter oversight of compliance with financial stability standards.
The final ASX Inquiry report is due to ASIC by 31 March 2026. Until then, ASIC will monitor ASX's implementation of commitments, with the capital charge and governance changes forming the cornerstone of the transformation.
This development underscores regulatory prioritization of market integrity, aligning ASX's operations with international standards for financial infrastructure resilience. Investors are advised to monitor progress on the Accelerate program and ASIC's ongoing assessments.
