Australia's corporate regulator has commenced an investigation into ASX for oversight related to the failed replacement of the bourse operator's ageing clearing and settlement system, the company said.
The Australian Securities and Investments Commission (ASIC) will look into whether ASX and two of its units breached their obligations under various laws from October 28, 2020, to March 28, 2022, in relation to oversight of the program.
Last year, the failed overhaul of ASX's Clearing House Electronic Subregister System (CHESS) with its own blockchain technology resulted in the company booking a charge of up to A$255 million ($169 million).
The blockchain technology was developed by US-based Digital Asset Holdings, which ASX bought a five per cent equity stake in, worth $14.9 million.
Accenture was hired review why the CHESS replacement was delayed by 18 months in 2022, and later issued a damning report about the project's shortcomings and problems.
At a parliamentary hearing in December, ASX apologised for the failure but denied misleading the market or regulators.
"In accordance with ASIC's policy on public comment in relation to current investigations, ASIC will not comment further on the investigation at this time," it said in an e-mailed response to Reuters.
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