ASX said its CHESS system would remain available beyond the standard end-of-day timeline to provide sufficient time for CHESS users to complete activities following resolution of this issue. ASX said at 4.37pm, just after the market closed, that it was still investigating the cause of a delay to the CHESS batch settlement process that has prevented payments going through for all stocks traded on Wednesday.
One market participant, who is active in the equity market and has substantial positions to settle, said they were engaged in frantic phone calls on Friday afternoon to determine whether they draw on lines of credit to pay for trades, given the risk of not being paid for shares sold on Wednesday. The issue could create cash flow problems for stockbrokers the weekend before Christmas. The CHESS outage came as stockbroking trading staff had already departed for holidays, or were at Christmas parties in Sydney and Melbourne CBDs. Risk teams and lawyers were being called on Friday afternoon to prepare for possible defaults and to determine the way forward if the batch process is delayed into the evening. ASX said it had notified both regulators about the issues, the cause of which is still unknown
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: 7NewsSydney - 🏆 16. / 63 Read more »