ASX falls short on risk and governance standards, RBA finds
The Reserve Bank of Australia found that ASX clearing and settlement facilities only partly observed key standards on governance, risk management, and credit and operational risk in its 2026 assessment released on September 23.
Upgrades and persistent gaps
The annual review examined four entities: ASX Clear, ASX Clear (Futures), ASX Settlement, and Austraclear.
While facilities observed or broadly observed many benchmarks, one or more only partly met standards for governance, comprehensive risk management, credit risk, and operational risk.
Following the December 2024 batch settlement incident, ASX strengthened CHESS resourcing and contingency arrangements.
Consequently, the RBA lifted ASX Clear and ASX Settlement from “not observed” to “partly observed” for operational risk.
However, the central bank cautioned that this targeted adjustment does not reflect broader progress across the group’s risk management architecture.
The transformation hurdle
To remedy deep-seated deficiencies in capability and corporate culture, ASX established a dedicated Transformation Portfolio under regulatory expectations.
Brad Jones, RBA Assistant Governor for Financial System, emphasized that ASX faces an extensive organisational reset.
“This assessment highlights that, despite progress during the year, ASX is still not meeting the RBA's expectations in several important areas,” Jones stated.
The central bank conducts its supervision jointly with ASIC.
Incremental fixes are not enough
Upgrading CHESS to partial observance is merely a minor fix rather than a systemic breakthrough.
The operator remains critically slow in overhauling its risk and governance structures.
Regulators must keep pressure high to prevent further market disruptions.