Australia’s bank was released today The 2025 evaluation of ASX Clearing and Settlement Facilities (CS). The document evaluates the performance of the ASX CS facilities against the bank’s financial stability standards.
RBA concludes that ASX has an important job to meet the bank’s expectations for a market -critical operator. Recent risk management shortages – in particular the December 2024 Settlement incident – have pointed out that ASX should make fundamental changes in governance, culture and risk management.
ASX must also speed up the rise in operation and financial risk, while also fulfilling basic milestones for its most important technological projects. The provision of these initiatives will require appropriate resources and the RBA will closely monitor progress next year.
The ASX CS facilities were evaluated as “observed” or “widely observed” many of the individual standards.
The bank evaluated that one or more of the partly observations of CS facilities in accordance with these standards in the context of integrated risk management, governance, credit risk, final settlement and operational risk.
The ASX Clear and ASX settlement is still evaluated as “not observed” in the business risk model, following the bank’s out -of -bank estimate against this standard in March 2025.
The Bank has issued some recommendations, including that ASX should: to obtain the assurance that it has faced gaps in the statement and appetite strategy and the strategy for returning the risk of financial risks and the treatment of the risk transformation plan and the evaluation of the period Continuity and information regulation on all CS facilities, improve data and reporting of financial models and issues.
The Bank is conducting an annual evaluations of ASX’s four CS facilities: two central counterparties – ASX Clear Pty Limited and ASX Clear (Futures) PTY Limited – and two Mobile Settlement Installations – ASX Settlement Pty Limited and Austraclear Limited. These evaluations include the evaluation of the compliance with CS facilities against any Financial Stability Temption.
ASIC has a separate but complementary responsibility for the supervision of CS facilities. During the supervision of the CS facilities, the RBA works closely with ASIC.
ASX Helen Lofthouse CEO commented:
“We are strongly aware that ASX must accelerate our progress to rebuild confidence with our regulatory authorities, especially following the frustrating incidents of last year.
As we are in the middle of our transformation, the recommendations described in the RBA report reflect and align with our views on where additional focus and improvement requires.
In the field of operational risk, we focus strongly on chess emergency arrangements. We have already completed many basic elements, such as defining code and memory growth, that will improve the durability of the basic system. And now we are proceeding with plans for various solutions that should further improve emergency arrangements.
The transformation of a complex market infrastructure organization is an attempt at a marathon and we know that many of our initiatives require constant efforts for several years to offer the benefits. Our focus on improving operational risk and durability is the central part of the Accelerate program, which will be the vehicle to ensure that we are doing well. It’s a priority that you should not miss for ASX. ”