ASIC Chair Joe Longo has welcomed the establishment of a new Advisory Group to advise ASX Clear and ASX Settlement on strategic clearing and settlement issues. Importantly, this includes input into the governance of the ASX CHESS replacement project.

Appointment of Independent Chair
On 2 August, Mr Longo hosted a roundtable, comprised of a small group of recognised industry leaders, and including ASIC Commissioner Danielle Press and the Deputy Governor of the Reserve Bank of Australia, Michele Bullock.

The roundtable was convened to address longstanding industry concerns over the CHESS replacement project and the adequacy of ASX’s stakeholder engagement and governance, including ASX’s management of intragroup conflict of interests.

During the roundtable, ASX announced the appointment of Alan Cameron AO as Independent Chair of the Advisory Group.

Mr Longo said, ‘ASIC welcomes the appointment of Alan Cameron as Independent Chair to the Advisory Group. Mr Cameron and the Advisory Group will have an important role in assisting ASX to restore trust and confidence in the project.

‘There was a consensus that ASX, the Advisory Group and industry must work collaboratively to achieve the best outcome for the market, for listed companies and investors, and not favour any particular Group’s interests.’

We expect ASX and the Advisory Group to work together in the best interests of the market, including for the replacement of CHESS. The Advisory Group will provide important input to the governance of the CHESS replacement project.

In a letter of expectations to be sent in the coming weeks, ASIC and the RBA will advise ASX of the regulators’ expectations in respect of the Advisory Group. A public response from the boards of ASX Clear and ASX Settlement is expected.

ASIC is prepared to use a range of regulatory options to ensure that ASX Clear and ASX Settlement adhere to the regulators’ expectations with respect to the Advisory Group.