ASX shareholder to sue former directors over CHESS project

A shareholder in the Australian Securities Exchange (ASX) intends to seek court approval to initiate legal proceedings against former directors over the troubled CHESS replacement project. The CHESS system, which underpins Australia’s equities trading infrastructure, has faced prolonged delays and cost overruns since its planned overhaul was announced in 2015.

The shareholder, whose identity has not been disclosed, argues that former ASX leadership failed to exercise due diligence in managing the project, leading to significant financial and operational setbacks. The legal move follows years of criticism over the ASX’s handling of the CHESS replacement, which was originally slated for completion in 2021 but has been repeatedly postponed.

ASX has previously attributed delays to technical challenges and the need for extensive testing, though the exchange has not formally commented on the impending legal action. The project’s escalating costs and timeline extensions have drawn scrutiny from regulators and market participants alike.

If approved, the lawsuit would mark one of the most prominent legal challenges against ASX leadership in recent years, highlighting ongoing concerns over corporate governance and project oversight in Australia’s financial infrastructure sector.