Ann: Updated Statement of Claim ISX vs ASX, page-77

@ben79 I think yourcomments capture it best. Once Lewis and Karantzis locked horns, itwas personal and it was not going to end well (or end at all).

A few things:

1. Whilst it's very tempting, it's best to plead facts not evidence. Itmight make for a good read now but much of this is for the trial and closingsubmissions when the evidence has been adduced and witnesses have beencross-examined on contents. The documents speak for themselves;

2. The large effort spent on highlighting other companies is interesting butlargely irrelevant to the initial and ongoing suspension of ISX. It mightshow inconsistencies but you have to sheet that back to thefacts surrounding the ISX suspension. I don't know all the facts of thepurported indiscretions of other companies, only select bits have beenhighlighted, but they're all unique to a particular set ofcircumstances. It will probably get a sympathetic ear from the Benchbut simply because someone got a speeding fine when plenty of cars passing bydidn't doesn't mean you get off your speeding fine (a hackneyed example, Iknow, but you get the drift);

3. Unfortunately, ASX have this concept of an overriding 'absolutediscretion'. I don't agree with that level of largely unfettered power but Icertainly would rather have a Court decide on it than an ASX Appeal Board.Enough has been said about that discretion and I'm not going to re-invent thewheel but it is a large hurdle to get over. I'm not saying that ISX won't, butdemonstrating Wednesbury unreasonableness (as interpreted in a couple of morerecent High Court cases) is not a simple lay-down misere. Be mindful thatabsence of 'hard evidence' or 'insufficient evidence' doesn't equate to 'noevidence' and an expression of personal opinion is nothing more than that- a personal opinion. I can't comment on the internal ASX chain ofcommand, as alleged, as I simply don't know it. The initial suspension may wellbe found to be unjustified and ASX will rightly cop a rap for that, but isn'tit really what happens after that which is important, i.e., reasons for ongoingsuspension. It seems that that is the time when ASX and ASIC start to lineup the ducks knowing that the house may not be entirely in order;

4. Court pleadings are not some sort of instalment plan. If this is the highwater mark of what has been turned up on discovery, then ISX have to leadwith their front foot now. There can't be any of this "we're sittingon a treasure trove" stuff. This is the 4FASOC - I understand that thismaterial is just in but they won't be permitted to keep amending the SOCparticularly if they're sitting on something;

5. None of what is outlined in the latest SOC version is likely to rattleeither ASX or ASIC to any great extent. They know about it, they wrote it, theyreturned it under Court order, they knew it would surface, they didn't resistthe 4FASOC, and I expect they'll answer it in their Reply. Confess and avoid."Yes your Honour, both parties could have handled things better inhindsight". I agree, it's not a good look and they should get a toweling from some journos, but it's not the torpedo that manywould think and these people have thick hides. The ATO was front and centre afew weeks back. Likewise, this will get its airtime for a period but, then it's"short memories" for the broader public until someone is sworn in atthe hearing and has a document shoved under their nose. Certainly don't expectanything in print from the AFR stable;

6. This Judge is very experienced and very clever. There is no way she will simply look at the documents on their face and not question what underpins them and what it was that set the ball in motion, and then look at what is behind that. Think about it. If someone arrives in Court with documents that suggest that a suspension is unlawful, the first question you ask is why was the market operator (plus or minus the regulator) even looking into it and whatever answer you get, you look for further antecedents from there, and you keep going until you're satisfied that it was unwarranted. If ISX don't strap it up and cover their bases on this so that it is watertight, then rest assured that ASX will.

I guess the important thing for now is that this material has turned up andprovides some cold comfort to many rather than the big end of town beingseen to be infallible and blameless. Where it goes from here and how much gravitas it generates remains to be seen. I think the best outcomeis still to have the matters resolved and move on, terms not to bedisclosed. Now would be the best time for it whilst this is a bit raw. As with all compromisedsettlements, best result is when all the parties walk away feeling that they've had a bit of awin, but could've done better. List elsewhere, do whatever, get on with thebusiness, and put this wholly regrettable story behind.

I'm sure the overwhelming majority of holders are not interested in mounting aone company war in an effort to take down ASX and ASIC. Be realistic, they'llalways be around. They may get a little bruised this time, but they'll always be around.Nobody wants to see this dragging on for another 12 months (at least) and thena possible appeal on the back of that. Let ASX get their Reply filed and get itinto mediation ASAP.

cheers