The market operator’s competence again questioned as more systems go down on Tuesday after the forced closure on Monday.
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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.
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- What caused the ASX outage on Monday trading?
- ASIC to investigate if ASX is fit to hold market licence
- ASX trading halt to remain in place for the rest of the day
- Update: Trading on ASX remains in ‘enquire’ state after market data error
- ASX trading has been frozen this morning in IT glitch
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.