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The Reserve Bank of Australia (RBA) and the Australian Securities and Investments Commission (Asic) have expressed grave concerns about the management of operational risk at the country's leading stock exchange following a batchsettlement failure in December last year.
ASX confirms it has received a joint letter from the Reserve Bank of Australia (RBA) and the Australian Securities and Investments Commission (ASIC) outlining regulatory action following the CHESS batchsettlement incident on 20 December 2024.
ASX has today released an incident review to assist customers and stakeholders with a more detailed understanding of the CHESS BatchSettlement incident that occurred on Friday 20 December 2024.
One of those is real-time settlements, which have done away with the need for batchsettlements of the past, PYMNTS reports. Switzerland has generally been ahead of the game in the world of digitizing payments, but other countries have begun looking at ways to speed things up.
One of the biggest disruptions of the payments ecosystem as a result of the growing traction of digital assets and the ubiquity of real-time settlement will be felt by corporate treasurers, Long predicted.
Real-time settlements have done away with the need for the batchsettlement, which had previously been the norm for treasury departments. PYMNTS writes that blockchain data has helped with storing data.
Costs for authorizations, captures, batchsettlement entries, decline fees, and other lifecycle events nickel and dime merchants. Transaction Fees Often $0.10 – $0.25 per transaction, these fees originate from payment networks but disproportionately benefit processors.
In a joint letter to ASX, the regulators expressed their deep concerns about the potential for operational incidents, such as the CHESS batchsettlement failure, to affect the ability of CHESS to reliably service the Australian equities market until CHESS is replaced.
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