The ASIC panel’s final report into the ASX will be a must read for SIAA’s members who are trading, settlement and clearing participants and key customers of ASX.
“The final report reflects the concerns our members have had for some time. SIAA was interviewed by the panel and provided comprehensive feedback to the inquiry. We agree with the ASX that the report is a tough read,” said the CEO for Stockbrokers and Investment Advisers Association (SIAA), Maria Lykouras.
“One issue that SIAA raised in the aftermath of the CHESS outage of 2024 was the need for ASX to undertake a review of the current CHESS code to ensure that a repeat does not occur. We hope that this review does not get lost in the noise of this report and is undertaken. It is important that we have confidence in current CHESS,’’ Mrs Lykouras said.
‘’Our members agree with the panel’s conclusion that emergence of greater competition in clearing and settlement is unlikely to occur in the foreseeable future which is why improving the independence of the clearing and settlement boards is so important. We would like to see ASX go even further than the panel’s recommendations in this regard and include representatives of clearing and settlement participants on those boards. We think this would be a very effective way to improve the management of conflicts of interest identified by the panel and ensure the concerns of industry are taken into account. ‘’
‘’The panel also called out that participants wanted greater transparency in pricing to allow for better accountability on the quality of service delivered for the price set. That is consistent with our members’ feedback and we would also like to see greater transparency in pricing,’’ stated Mrs Lykouras.
SIAA has continued to call for increased transparency of ASX’s risk management function and for participants to be able to meet with the ASX’s chief risk officer on a regular basis. ‘’We hope that ASX will increase its transparency in response to this report. While ASX’s assessment of market risk is good, our members want greater engagement with ASX’s risk committee so they have better visibility over how ASX is dealing with its operational risks,’’ she said.
‘’Our members are key ASX stakeholders and look forward to engaging with ASX to implement the strategic package of actions while acknowledging the positive steps that ASX has already taken. In the meantime, our members continue to work closely with ASX on the CHESS replacement project. It is critical for the market that CHESS replacement is a success,’’ Mrs Lykouras concluded.
Contact:
Maria Lykouras, CEO
0467 773 218