ASX Turns the Page: ASIC Resolution, New CEO, and a Cost-Heavy Reinvention
FY26 results show a company exiting a regulatory saga and doubling down on technology—with AI, tokenization, and a record listings pipeline.
ASX.AX · Earnings Call · 2026-08-12
FY26 Results: Revenue Power, Expense Pain
The top line was strong: “operating revenue increasing 13.3% to $1.25 billion” — Darren Yip, Interim CEO · 2026-08-12. Management pointed to record volumes in interest rate futures and a 22.5% increase in ASX on-market value traded. Listings added $32.6 billion in quoted market capitalisation, up 85.5%, and the listings pipeline is the strongest in years. But costs are running ahead: total expenses grew 21.1% to $557.4 million, with technology modernization and the Accelerate Program being the primary drivers. Excluding one-off ASIC inquiry costs, expense growth was still 14.4%, and the company is guiding to 18–21% growth in FY27.Regulatory Closure and Program Reset
The ASIC Inquiry has concluded, and the company has now agreed its Commitments Plan with ASIC and the RBA. This removes a significant overhang that has weighed on the stock and governance discussions for over a year. The Accelerate Program has been reset with five core workstreams, and the company is now in implementation phase. The cost is meaningful, but so is the potential benefit: the $150 million capital charge agreed with ASIC could be reduced or released upon successful delivery. The company has also enhanced governance, with fully independent clearing and settlement boards. As CFO Andrew Tobin noted, “we go through an activity-based allocation process” — Andrew Tobin, CFO or Finance Executive · 2026-02-11 to determine expense allocation for the building-block model—a method now central to revenue recovery. Prior to the final report, management had signaled the costs were temporary. “The range that we've given of the $25 million to $35 million that we expect to spend on the ASIC inquiry response, we believe that's specific to this year” — Helen Lofthouse, Managing Director and CEO · 2025-08-14—and indeed the actual ASIC inquiry costs came in at $30.8 million, within the guided band.New Strategic Bets: AI, Tokenization, US Dollar
Beyond the regulatory cleanup, ASX is positioning for growth. The company plans to invest in AI across internal processes and customer products, launch US dollar-denominated securities in Austraclear, and explore tokenization of bonds for 24/7 collateral movement. These are new initiatives that could open up revenue streams and improve market resilience. Darren Yip highlighted, “We are also increasing our investment in AI, to create value for our customers and to improve organizational efficiency” — Darren Yip, Interim CEO · 2026-08-12. The company also launched products like options on gold ETFs and new electricity derivatives earlier in the year.Looking ahead, Anthony Attia will commence as Managing Director and CEO at the beginning of next month.