ASIC Sues Australian Stock Exchange Over Misleading Statements on Blockchain Project

The Australian Securities and Investments Commission (ASIC) has taken legal action against the country's primary stock exchange in Federal Court, accusing it of making deceptive statements regarding its now-defunct initiative to upgrade its systems with blockchain technology. ASIC alleged that the Australian Securities Exchange (ASX) misled investors by claiming that the project to replace its Clearing House Electronic Subregister System (CHESS) trading platform was progressing well and on track for completion in April 2023. However, ASIC argued that the project was not meeting its targets as of early February 2022. ASX's Managing Director and CEO, Helen Lofthouse, acknowledged the seriousness of the allegations and stated that the company is reviewing them carefully. The project, which began in 2016 and transitioned to a distributed ledger technology-based system in 2018, faced significant challenges and delays, ultimately leading ASX to abandon its blockchain plans in favor of traditional solutions. ASIC emphasized the importance of transparent and effective project management to maintain investor confidence in the Australian market.