ASX Asked to Form Advisory Group for CHESS Replacement – Markets Media
ASIC has requested that ASX establish a high-level industry advisory group to support ASXs CHESS replacement project. It is proposed that this group is independently chaired and will advise on significant strategic clearing and settlement issues relating to cash equities trading in Australian markets with a focus on CHESS replacement.
The proposed solution will be discussed at an industry roundtable on 2 August 2023. The industry roundtable will be chaired by ASIC Chair Joe Longo who will be joined by ASIC Commissioner Danielle Press and the Deputy Governor of the Reserve Bank of Australia, Michele Bullock.
Attending the roundtable will be a small group of recognised industry leaders. ASICs initiative follows longstanding industry concerns over the adequacy of ASXs stakeholder engagement and governance. This includes on-going concern with ASXs management of intragroup conflict of interests.
ASXs effective engagement with industry is an urgent issue that must be resolved in order for the overall project to get back on track, said Mr Longo. The establishment of an appropriate stakeholder advisory group for cash equity clearing and settlement matters is critical to the restoration of confidence in ASXs decision-making and culture.
More than twelve industry leaders have been invited to attend the roundtable, drawn from different stakeholder sectors and fields of expertise.
ASIC expects each attendee to act in the public interest and to work constructively towards a solution.
It is vital that ASX gets its stakeholder engagement on the CHESS replacement right. Ultimately all parties, including ASX, will need to be committed to genuine collaboration and consultation and to the success of an advisory body. The industry now has the opportunity to be part of that solution, and it is in the national interest to do so.
ASIC is Australias corporate, markets and financial services regulator.
Source: ASIC
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ASX Asked to Form Advisory Group for CHESS Replacement - Markets Media