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UPDATE 1-Australia's central bank raises concern over stock exchange's trading systems

Published 20/11/2020, 05:08 pm
© Reuters.

(Adds ASX response in paragraphs 5 & 6)

Nov 20 (Reuters) - Australia's central bank voiced concerns on Friday over recent issues with the stock exchange's trading systems after nearly an entire session was lost earlier this week and as investors faced a number of other operational issues.

The payments system board of the Reserve Bank of Australia (RBA) said it would be looking into whether there were underlying issues at those trading systems operated by the ASX Ltd ASX.AX .

"The Board is concerned about the recent operational issues affecting CHESS and ASX's trading systems," the RBA's payments board said in a statement after a meeting on Friday.

The ASX is planning to do away with CHESS, the computer system it uses to manage settlement of transactions, by 2023 and the payments board emphasised the need for the replacement system "as soon as this can safely be achieved by ASX and users of CHESS."

A spokesman for the ASX said the bourse welcomes any queries from the RBA about this week's issues.

"ASX's equity trading and post-trade systems have demonstrated systemic reliability and resilience over a long period of time," the spokesman said.

Trading on the Australian stock market has been operating normally since the outage on Monday that was caused by a software issue with ASX's new equity market trading platform. outage, and subsequent issues with CHESS and Centre Point, the ASX's mid-point trade matching system, forced Australia's corporate regulator to also raise concerns this week over the ASX infrastructure and said it would look at taking further action over compliance with licence obligations.

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