Hi Chilling Out, I would very much be interested in your views...

Hi Chilling Out,

I would very much be interested in your views on the current state of play and possible scenarios.

The latest orders on 3 December have the case moving to a Mediation stage in March 22. I assume this is where there is potential for there is the potential for the case to settle.

At that stage, the issues in dispute are ‘teased out’ and the mediators for each side is in a position to express a view to their side as the relative merits of each piece of evidence.

1. Looking at the ASX case, it does look as if the ASX is on its own in that ASIC has not bought into being partly responsible for the suspension.

2. I expect that the ASX’s Professional Indemnity insurer will be in the driver’s seat on the claim and making judgments about the relative merits of the case rather than being influenced by the ASX management views. (The Licence for the ASX to operate the stock market under the Corporations Act will likely require that the ASX hold say $100 million of Professional Indemnity Insurance for the ASX’s Wrongful Acts and failures).

3. If point 2 is right, it might be that there can be a settlement without the matter proceeding to trial.

4. The two expert reports suggest there will be an argument over the quantum of any financial settlement as claimed by ISX. Again, I think the insurer will be looking at its insurance policy limit (lest say $100m), and say ‘well we are exposed under the insurance policy for say most if not all of the $100m sum insured under the insurance policy.

5. If a settlement amount well north of say an insurance sum of $100m is being negotiated – based on the expert reports, then that might become a separate side negotiation with the ASX, because it is the ASX exposed for the additional amount.

I would very much appreciate ChillingOut’s update on the scenarios on how this might play out in March 2022.