Australia's share market operator has been warned to get its act together by the Reserve Bank in a scathing report amid the bungled update of its trading settlement system.

The ASX had "considerable work to do" to meet the central bank's expectations, the RBA said as it released a report into the operator's clearing and settlement facilities on Wednesday.

As the agency overseeing these facilities in Australia, the RBA threatened to take further action if the ASX didn't make foundational changes to its governance, culture and risk management processes.

"ASX is not currently meeting the regulators' expectations for an operator of critical national infrastructure. Resilient and secure (clearance and settlement) facilities are crucial to the stability of the Australian financial system,"

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