The Reserve Bank of Australia (RBA) expressed disappointment by the delay to the go-live date for CHESS replacement, and has said that the Australian Securities Exchange (ASX) will need to demonstrate that appropriate arrangements are in place to manage risks related to its dependence on key vendors. The central bank said it will work closely with the Australian Securities and Investments Commission (ASIC) in supervising ASX’s response.
RBA’s assistant governor in the Financial System division, Brad Jones, said in a statement: “The ASX clearing and settlement facilities are critical to the smooth functioning of the Australian financial system. It is important that ASX further strengthen its governance and risk management arrangements to the high standards expected of critical market infrastructure. The safe and timely replacement of CHESS must also remain a high priority for ASX.”
At the ASX AGM, voting revealed discontent over the 2022 remuneration report, to which chair Damian Roche said in a statement: “We acknowledge that some concern has been expressed about the reward received by our former managing director and CEO in light of the delays to the CHESS replacement project. The CHESS project is highly complex and remains challenging. There is no question that the performance of this project did not meet our or our customers’ expectations in 2022.”