ASX Ltd ASIC legal settlement we think meaningfully reduces risk of shareholder class action

Research evidence excerpt

ASX Ltd ASIC legal settlement we think meaningfully reduces risk of shareholder class action

J P M O R G A N Asia Pacific Equity Research

15 June 2026

ASX Ltd Overweight

ASX.AX, ASX AU

ASIC legal settlement we think meaningfully reduces Price (12 Jun 26):A$49.20

risk of shareholder class action Price Target (Dec-26):A$57.00

The ASX today announced a settlement with ASIC in relation to statements made Australia

in 2022 regarding the status of the CHESS project. Whilst the ASX has agreed to

Insurance and Diversified Financials

pay a penalty of $20.5m and pay ASIC legal costs ($3m) – we think there is a

material silver lining. Given the ASX’s view that they have a strong legal case Siddharth Parameswaran AC

against the accusations and the period of exposure only appearing to be 7 weeks (61-2) 9003-8629

siddharth.x.parameswaran@jpmorgan.com

before updating the market on the status of the CHESS project, we think risks J.P. Morgan Securities Australia Limited

around class actions are materially reduced. Overall, it appears to us that the current Tharan Jeyathasan

board is still in “clean-up” mode before the arrival of the new CEO Anthony Attia. (61-2) 9003-6098

There is still one risk in our view relating to how fervently they pursue the current tharan.jeyathasan@jpmorgan.com

parameters of the pricing model for clearing and settlement (but we have not given J.P. Morgan Securities Australia Limited

full benefit for this model in our earnings forecasts). Rishi S Parihar

(91-22) 6157-3775

• Settlement reached and trial avoided: ASX has settled ASIC’s August 2024 rishi.parihar@jpmchase.com

civil proceedings, admitting the “progressing well” – 10 February 2022 J.P. Morgan India Private Limited

statement contravened ss 12DA and 12DB of the ASIC Act (i.e. the ASX