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UPDATE 1-Australian regulator worried about bourse infrastructure, considers further action

Published 17/11/2020, 07:24 pm
© Reuters.
ASX
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(Adds details new software issues, ASIC concerns)

Nov 17 (Reuters) - Australia's corporate regulator said on Tuesday it was concerned about the stock exchange's infrastructure and was looking at the operator's compliance with its licence obligations, a day after nearly an entire session was wiped out due to a software issue.

Trading resumed on Tuesday, but the bourse operator ASX Ltd ASX.AX said market participants were experiencing delays with CHESS, the computer system the ASX uses to manage settlement of transactions. Australian Securities and Investments Commission (ASIC) said it was talking to stakeholders to minimise the impact on markets and had not asked for the ASX's mid-point trade matching system — Centre Point — to be suspended after data issues with it.

The ASIC also said it was "considering further actions to ensure the adequacy of ASX's human, financial and technological resources to operate its markets in an orderly manner," adding that it was actively assessing the bourse's compliance with market licence obligations.

Due to the issues with Centre Point, bids and offers from rival bourse Chi-X were not being used, and by doing so, the ASIC said transactions on Centre Point failed to meet one of its market integrity rules.

The ASX was forced to halt trading 20 minutes after opening on Monday due to an issue with its new trading platform for the equity market that affected trading of multiple securities in a single order.

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