Australian regulators probe ASX over software delay

Australia's corporate regulators have begun investigating possible breaches of disclosure rules at share market operator ASX Ltd, the company said on Wednesday after it cancelled a years-long rebuild of its trading software system.

The Australian Securities and Investments Commission ASIC will investigate whether ASX broke laws relating to director responsibilities over public statements issued by the company in relation to the troubled project, which was pulled in 2022 after years of delays.

The market operator took a one-off charge of $176.3 million this February, which was linked to the project, drawing criticism from market participants, regulators and elected lawmakers late last year due to the company's earlier statements about its progress.

The new system was on track months before the company abandoned the project in November last year, and the schedule was repeatedly postponed months before it told shareholders and stockbrokers that the new system was on track.

The ASX said it takes its obligations very seriously and will cooperate fully with ASIC ASIC, and wouldn't say anything since the investigation was ongoing.

At a December parliamentary hearing, ASX apologised for the failure, but denied misleading the market or regulators.