ASIC rips into ASX again as more systems go down

The market operator's competence again questioned as more systems go down on Tuesday after the forced closure on Monday.

| More on:
A stressed man with his hands on head trying to work out a major systems failure

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just one day after the share market was forced to close for most of Monday, ASX Ltd (ASX: ASX)'s fitness to operate has been questioned again.

While the main market successfully reopened at 10am on Tuesday and survived a whole day's trading, troubles arose in other ASX systems.

Late in the afternoon, the Australian Investments and Securities Commission tore into the market operator for data issues with the Centre Point matching system.

That system normally takes in bids and offers from both ASX and alternative market Chi-X to give buyers and sellers the best price possible.

But the data failures meant ASX decided to ignore the Chi-X feed from 11.17am onwards.

ASIC warned that this exclusion could mean a violation of market integrity rules.

As of Wednesday morning, ASX had decided to suspend Centre Point "until further notice".

"ASX believes it is prudent to suspend the Centre Point service for today, following the issues experienced yesterday creating a national best bid and offer," an ASX spokesperson told The Motley Fool.

"This will allow ASX to implement a fix to the service, and ensure a safe and stable market environment."

Is ASX fit to run the market?

Just like Monday, ASIC expressed its concern about ASX's infrastructure and the company's fitness to operate the market.

"ASIC is actively assessing ASX's compliance with its market licence obligations and is considering further actions to ensure the adequacy of ASX's human, financial and technological resources to operate its markets in an orderly manner," stated ASIC.

ASX's share price fell more than 2% on Tuesday, falling from $82.91 at 10am AEDT to close at $81.19.

ASX's CHESS system also failed Tuesday

The ageing CHESS system, which settles trades, also failed Tuesday afternoon.

The delay in batch processing was not connected to Monday's market outage.

The CHESS system processes trades 3 business days after they took place, meaning the Tuesday problems would have affected Friday's transactions.

As of Tuesday night, ASX's system status page showed the delayed batch run was completed.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

young woman reviewing financial reports at desk with multiple computer screens
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
Share Fallers

Why Bell Financial, IPD, Megaport, and Resolute Mining shares are falling today

These shares are starting the week in the red. But why?

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Liberty, Lovisa, Novonix, and SG Fleet shares are storming higher today

These shares are starting the week strongly. But why? Let's find out.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Industrials Shares

This ASX share is tumbling 13% on reduced earnings forecast

Earnings are expected to fall in the first half, much to the dismay of the market.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Mergers & Acquisitions

Guess which ASX All Ords stock just rocketed 23% on a $1.2 billion offer

Investors are piling into the ASX All Ords stock amid a $1.2 billion takeover bid.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Technology Shares

Why today is a big day for Pro Medicus shares

Records are being broken by this share on Monday. What's going on?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Opinions

3 reasons the GQG share price looks like a buy to me

Here’s why the fund manager could be good value.

Read more »

Young man looking afraid representing ASX shares investor scared of market crash
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »