Blog: ASIC puts brokers on notice: boost competition or face regulation – The Australian Financial Review

ASX chief executive Dominic Stevens said work to meet the new conditions was already under way, saying, “we are applying lessons from the outage to CHESS replacement”.

The long-awaited CHESS replacement, which will utilise distributed ledger technology or blockchain for clearing, is due in 2023.

ASIC’s investigation into the outage – concluded almost a year to the date of the November 16, 2020 incident – also found that brokers did not have in place appropriate measures to conduct trades via ASX’s main competitor, Chi-X.

While ASIC has imposed major conditions on ASX, it stopped short of determining that the market operator had breached its licence obligations.

“ASIC’s actions today are all about ensuring the efficient and effective future operation of Australia’s financial markets infrastructure,” Mr Longo said.

“ASX and market participants must act to ensure that the market can function at all times, so that vital sources of capital are available to the economy.”

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