FX.co ★ RBA Presses ASX for Governance Overhaul

The Reserve Bank of Australia (RBA) issued a statement emphasizing that the Australian Securities Exchange (ASX) needs to implement "foundational changes" in its governance, culture, and risk management in light of last year's trading settlement failure. The RBA highlighted that ASX's clearing and settlement operations still fall short of regulatory expectations and affirmed its commitment to maintaining stringent oversight. According to RBA Assistant Governor Brad Jones, "ASX is not currently meeting the regulators' expectations for an operator of critical national infrastructure," underscoring the imperative for "resilient and secure" systems. The RBA has called for enhancements in ASX's risk transformation strategy and the reassessment of its business continuity protocols. Concurrently, ASX CEO Helen Lofthouse conceded the necessity to "accelerate our progress to rebuild trust" and mentioned that the exchange has already instituted contingency measures, code refinements, and memory upgrades to bolster resilience.