ASX vows reform after placing ‘investors over markets’
The operator of Australia’s stock exchange has promised further reforms following criticism from an independent investigation launched by the corporate watchdog.
The final report by the three-member panel, led by Commonwealth Bank director Rob Whitfield, attacked ASX Ltd’s “closed and defensive culture” and said the company had underinvested in critical market infrastructure in favor of higher shareholder returns.
The report was commissioned by the Australian Securities and Investments Commission in July 2025 following a series of embarrassing technical glitches on the exchange, including a full-day outage on 16 November 2020 and a settlement failure on 20 December 2024.
The interim report presented by the panel in December was as follows: damning It led ASIC to force the ASX to hold a further $150 million in reserves.
Following this report, it agreed reforms, including the appointment of independent directors who are not part of ASX Ltd, to the boards overseeing four of its clearing and clearing functions.
Final reportThe report, based on more than 140 stakeholder interviews, revealed details of some of the ASX’s technical problems but did not recommend more specific reforms.
“The ‘laundry list’ approach of detailed recommendations for improvement has not previously served the ASX or the market ecosystem well,” the report, published on Thursday, said.
The investigation found the ASX was overwhelmed after being exposed to more than 120 reports examining governance, capacity, culture and risk management over the past five-and-a-half years.
ASX chairman David Clarke said the 88-page final report, like the 21-page interim report, was difficult to read.
“The panel … found a culture that had become defensive and insular, where we did not spend enough time looking outside,” he said.
“This is not how we shape and manage the change of the future.”
The ASX submitted a commitment plan to ASIC on February 27, outlining how it would deliver a strategic package of reforms.
The report noted that initiatives are continuing to strengthen interaction between the ASX and its regulators ASIC and the Central Bank.
The ASX is searching for a new chief executive after CEO Helen Lofthouse announced in February that she would leave in May.
The Australian Superannuation Investors Council said in a statement that it would contact the ASX to encourage rapid implementation of the actions outlined in the report.
“Australia’s superannuation members deserve strong governance at the top to support the long-term performance of their superannuation savings,” the council said.
LIKE
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
