Australian central bank blasts ASX for trading settlement failures

By Scott Murdoch

SYDNEY (Reuters) -Australia’s central bank said on Wednesday the Australian Securities Exchange must make “foundational changes” to its governance, culture and risk management after last year’s trading settlement failure.

The Reserve Bank of Australia also warned ASX’s clearing and settlement units still fall short of key regulatory standards and pledged to monitor progress closely.

The central bank, which has oversight of the clearing and settlement systems, said in a statement it would consider further regulatory responses if ASX did not improve.

“ASX is not currently meeting the regulators’ expectations for an operator of critical national infrastructure,” said RBA Assistant Governor (Financial System) Brad Jones.

“Resilient and secure clearing and settlement facil