Ann: $264m Damages claim against ASX for misleading conduct, page-274

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SeabreezeL

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22/08/20

12:46

Post #: 46737365
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Originally posted by gattertop: ↑

@aes411
That is increasingly the view I’ve come to. Although I think it’s more a case of the ASX wanting to protect their own turf and buy time in the hope they can extract some value from their tech transformation.

The ASX tech transformation launched in 2015 has now cost around $300m, with $80m spent in FY20 and a similar expectation for FY21. Reading the annual report and watching their results presentation earlier in the week it is hard to see what’s been achieved. The MD and CFO struggled to articulate any real benefits and revenue expectations. Behind the spin they seemed a little defensive.

The new CHESS platform is obviously part of it but is now a year behind schedule. I’ve only started following the ASX since the suspension of ISX so I’m no expert but if the other projects fail to generate revenue it’s hard to see the CHESS platform alone generating revenue to support a near $400m investment. Could there be a write down on the cards?

Five years, $400m, an uncertain end date and an unquantified return? Could the ASX board be feeling a little uncomfortable?And what if little ISX successfully commercialised their tech at a fraction of the spend and challenged the ASX monopoly profits. Would that trigger a write down of Goodwill? (Interestingly, the value of intangibles was identified as a key audit matter in the report).The damage to reputations and and egos would be painful.

I’m not suggesting (as yet) that this was all some grand plan. I’m just wondering if the commercial pressures inside the ASX were such that when the OM report presented, the opportunity to trip up ISX was too tempting. Perhaps they didn’t count on JK digging in and from there on the hole just got bigger.

If it did come to pass that the ASX let their commercial interests override their market operator obligations the damage to the integrity of our financial markets would be staggering.

Obviously this all conjecture and opinion on my part.

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Well said, ASX works on conjecture. I accept your conjecture too.
Bring it on.

ISX Price at posting: $1.07 Sentiment: Hold Disclosure: Held
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