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

A golfer celebrates a good shot at the tee, indicating success.
Share Market News

Here are the top 10 ASX 200 shares today

ASX investors finally enjoyed a win this Thursday...

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Industrials Shares

Up 39% in a year, is there more growth to come for this ASX 200 share?

IML Equity Analyst Josh Freiman shares his views on a major ASX 200 industrial stock.

Read more »

Man looking at his grocery receipt, symbolising inflation.
Share Market News

What the latest US inflation print means for ASX 200 investors

The ASX 200 is likely to benefit if the US Fed cuts interest rates again in December. But will it?

Read more »

guy helping girl invest in shares and dividends
Opinions

5 ways for investors buying ASX shares to stay focused during economic uncertainty

AMP Chief Economist, Dr Shane Oliver, offers advice on how to handle the Trump factor.

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Graincorp, Light & Wonder, Orica, and Wildcat shares are falling today

These shares are having a tough time on Thursday. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Catapult, Flight Centre, Nufarm, and Xero shares are storming higher today

These shares are having a strong session on Thursday. But why? Let's find out.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Opinions

1 ASX growth stock down 30% I'd buy right now

This international business is growing core earnings at a strong rate.

Read more »

Concept image of a man in a suit with his chest on fire.
Record Highs

How long can the CBA share price keep this up?

Australia's biggest bank is running hot. Does it make any sense?

Read more »