TechFlow reports that the Australian Securities and Investments Commission (ASIC) has filed a lawsuit in the Federal Court against ASX Limited, Australia's largest market operator, accusing it of making misleading statements about the replacement project for the Clearing House Electronic Subregister System (CHESS). ASIC alleges that ASX's announcement on February 10, 2022, claiming the project was 'on schedule' and would 'go live' in April 2023, was misleading.

ASIC Chairman Joe Longo stated that ASX's announcement involves core trust issues related to market integrity, which could be a collective oversight by the ASX board and executives at the time. Longo emphasized that the CHESS project is a critical national infrastructure concerning the operation of Australia's economy, and delays and suspensions of the project have caused significant costs to ASX and market participants. He noted that the project must be managed effectively and transparently, otherwise it could lead to a decline in confidence in Australia as an investment market. ASIC has not yet determined the specific penalties it will seek for ASX's alleged violations.

Previously, ASX had paid a fine of 1.05 million Australian dollars for violating market integrity rules.

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<p>Deep Tide TechFlow News, the Australian Securities and Investments Commission (ASIC) has filed a lawsuit in the Federal Court against Australia's largest market operator, ASX Limited, accusing it of making misleading statements about the replacement project for the Clearing House Electronic Subregister System (CHESS). ASIC alleges that ASX's announcement on February 10, 2022, stating that the project was "progressing as planned" and would be "launched" in April 2023, was misleading.</p>
<p>ASIC Chairman Joe Longo stated that ASX's statements involve a core issue of market integrity and trust, which may be a collective failure of ASX's board of directors and senior executives at the time. Longo emphasized that the CHESS project is a critical national infrastructure for the operation of the Australian economy, and the delays and suspensions of the project have incurred significant costs for ASX and market participants. He pointed out that the project must be effectively and transparently managed; otherwise, it may lead to a decrease in confidence in Australia as an investment market. ASIC has not yet determined the specific penalties it will seek for ASX's alleged misconduct.</p>
<p>Previously, ASX had paid a fine of 1.05 million Australian dollars for violating market integrity rules.</p>
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Australian Securities and Investments Commission sues ASX, accusing it of issuing misleading statements regarding the CHESS project.