RBA Says ASX Still Falls Short on Governance and Risk Controls

The Reserve Bank of Australia said ASX’s clearing and settlement facilities still fall short of regulatory expectations in several key areas, despite improvements made by the exchange operator over the past year.

In its 2026 assessment, the RBA found that one or more ASX clearing and settlement facilities only “partly observed” regulatory standards covering governance, comprehensive risk management, credit risk and operational risk.

ASX has faced increased regulatory scrutiny since abandoning its blockchain-based CHESS replacement project in 2022. Operational disruptions have also led regulators to demand stronger governance, technology resilience and risk controls across the Australian exchange operator.

The central bank said it remains concerned that ASX’s governance arrangements have not consistently prioritized the interests and obligations of its clearing and settlement businesses.

Austraclear, ASX’s debt securities settlement facility, was rated “partly observed” on operational risk requirements. The RBA said more work is needed to ensure ASX can maintain critical clearing and settlement services during severe or prolonged disruptions.

ASX established a Transformation Portfolio during the year to address identified weaknesses. The RBA has also outlined expected outcomes for the company, although it did not provide a specific deadline for meeting them.

“Despite progress during the year, ASX is still not meeting the RBA’s expectations in several important areas,” RBA Assistant Governor for Financial System Brad Jones said, noting that the company is undergoing substantial organizational changes to address longstanding problems.

The RBA issued no new recommendations in its latest assessment but said ASX would remain under heightened supervisory scrutiny during the next review period. Regulators will focus particularly on governance, the independence of clearing and settlement facilities, and operational and cyber resilience.

The assessment follows an Australian Securities and Investments Commission inquiry launched in June that identified longstanding weaknesses in ASX’s governance, capability and culture.

ASX acknowledged the RBA report. Its shares were trading more than 1% lower as of 0332 GMT on Wednesday.