Brief
- The company regulator in Australia has appointed a group of experts from three members to investigate the ASX.
- The survey comes after the scholarship abandoned its blockchain project of $ 163.1 million over seven years to replace its failure compensation system.
- The panel, led by the veteran banker Rob Whitfield, has to deliver its conclusions to ASIC by March 31, next year.
The business regulator in Australia has gathered a panel of heavyweight financial experts to examine the internal operations of Australian Securities Exchange following a series of failures, including a disastrous blockchain project of $ 250 million (163.1 million US dollars) which collapsed after seven years of development.
The Australian Commission on Securities and Investments (ASIC) announcement On Wednesday, he appointed three members of the panel to investigate the ASX group, focusing on governance, capacity and risk management executives within the country’s main stock market.
The panel will investigate the main organizational and cultural engines that have contributed to recent compliance incidents, will assess whether ASX has adequate stable market infrastructure capacities and will examine the group’s financial objectives and responsibility managers, according to the Reference conditions of the survey.
Rob Whitfield, former CEO of Westpac Banking Corporation of Institutional Banking and current director of the Commonwealth bank, will chair the panel.
It provides three decades of banking experience and received the order of Australia in 2020 for its service at the bank and the public administration.
Christine Holman, a non -executive director of AGL LTD and Collins Foods LTD, with 35 years of experience in the media, goods and technologies, and Guy Debelle, the former deputy for the Australian reserve, are a non -executive director in the media, goods and technology of technology.
Chain failure
The survey follows a failure project for chess based on ASX blockchain, which began in 2016 as an ambitious attempt to modernize the compensation and regulation system of 25 years of exchange using the technology of the big book distributed.
After seven years of delays in development and cost exceeding, ASX put the project with the project In November 2022, following an independent audit overwhelming by Accenture which identified “important challenges with the conceptions of solution”. Consequently, the exchange led to $ 170 million in losses before taxes.
In May 2023, ASX had officially abandoned Blockchain technology entirely.
Project director, Tim Whiteley, confirmed when the exchange had to “use more conventional technology than in the original solution in order to achieve commercial results”.
The collapse of the project has since triggered legal action, with Asic continuing the ASX Last August, for alleged deceptive statements on the progress of the project.
ASX had already paid $ 1,050,000 penalty (around US $ 684,000) Last March for separate compliance problems linked to market integrity rules.
Kadan Stadelmann, director of technology of the Komodo platform, said that ASX failures have “worked the investor trust” and highlight the risks associated with the too promising of business blockchain initiatives.
“The exchange experienced several breakdowns and failed to deliver a promised blockchain project,” said Stadelmann Decipher. “Without competition, the ASX has become inflated and ineffective.”
The panel must provide recommendations to combat all identified gap by March 31, 2026, with ASIC being defined to publish the report to guide the potential regulatory measures against ASX.
The regulator and the exchange did not immediately respond to Decipher Comment request.
Edited by Sebastian Sinclair
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