RBA Finds ASX Clearing Facilities Still Deficient in Governance and Risk Management

The Reserve Bank of Australia (RBA) has determined that ASX Ltd's clearing and settlement facilities still fail to meet regulatory expectations in several critical areas, according to the central bank's latest annual assessment. While acknowledging some progress over the past year, the RBA highlighted ongoing deficiencies in governance and risk management that require substantial improvement.

Key Deficiencies Identified

In its 2026 assessment released Wednesday, the RBA stated that one or more of ASX's clearing and settlement (CS) facilities only "partly observed" requirements relating to:

• Governance
• Comprehensive risk management
• Credit risk
• Operational risk

These areas are fundamental to the stability and integrity of Australia's financial markets. The central bank emphasized that while ASX has made efforts to improve, the results are not yet sufficient.

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"ASX is undergoing a period of substantial organisational change in response to several long-running issues," said RBA Assistant Governor (Financial System) Brad Jones. "This assessment highlights that, despite progress during the year, ASX is still not meeting the RBA’s expectations in several important areas."

Context and Regulatory Pressure

The report continues a period of intense regulatory oversight for the Australian exchange operator. This scrutiny has been significantly heightened since ASX abandoned its ambitious blockchain-based CHESS replacement project in 2022, a move that triggered demands from regulators for sweeping improvements in technology, resilience, and risk controls.

In response to these pressures, ASX has established a "Transformation Portfolio" to address deficiencies in its governance, capability, culture, and risk management. The RBA noted it has set clear expectations for the target outcomes of these reforms. For its part, ASX acknowledged the release of the RBA's assessment.