tl;dr
Australia's corporate regulator ASIC has appointed a panel of financial experts to investigate the internal operations of the Australian Securities Exchange (ASX) following a series of failures, including the collapse of a $250 million blockchain project after seven years. The inquiry will examine g...
Australia’s corporate regulator, ASIC, has appointed a panel of financial experts to investigate governance, capability, and risk management failures at the Australian Securities Exchange (ASX) following a series of compliance issues. The inquiry centers on ASX’s abandoned $250 million blockchain CHESS replacement project, which was scrapped after seven years due to development delays, cost overruns, and significant technical challenges.
The failed blockchain initiative resulted in substantial financial losses for ASX and led to ASIC filing legal action, accusing the exchange of making misleading statements regarding the project’s progress. Critics highlight ASX’s lack of competition and ineffective management as key factors that contributed to this outcome, underscoring the hazards of over-promising blockchain technology in complex enterprise environments.
Chaired by banking veteran Rob Whitfield, the panel includes Christine Holman and Guy Debelle, bringing decades of combined expertise across finance, technology, and regulatory sectors. Their investigation will examine ASX’s governance frameworks, organizational culture, risk management practices, and accountability mechanisms underlying recent systemic issues.
Starting as a bold modernization effort launched in 2016, the blockchain-based CHESS project aimed to update ASX’s 25-year-old clearing and settlement infrastructure. However, after repeated setbacks and a critical audit by Accenture citing significant design flaws, ASX abandoned the project in November 2022, writing off a loss of approximately US$170 million.
The ramifications extend beyond financial loss: the project’s collapse has shaken investor confidence and raised broader questions about ASX’s operational effectiveness in an uncompetitive market. According to industry voices, the failure signals caution against inflated expectations around enterprise blockchain and highlights the need for improved oversight.
The expert panel is tasked with delivering recommendations by March 31, 2026, aimed at informing potential regulatory reforms to strengthen ASX’s market infrastructure and governance accountability. These findings will be crucial in shaping the future resilience and integrity of Australia’s primary securities exchange.