ASX Limited will lower its dividend payout range following an agreement with the Australian Securities and Investments Commission (ASIC) to implement a series of reforms. This decision comes as the market operator faces scrutiny and agrees to enhance its critical market infrastructure. ASX operates Australia’s primary securities exchange, providing listing, trading, clearing, and settlement services. It also provides data and other information services to the financial industry.
According to ASX chief executive Helen Lofthouse, the company acknowledges the need for significant improvements. “There is no doubt this is a tough report…we must get better,” Lofthouse stated. The reforms include a strategic reset of its “Accelerate” transformation program and ensuring the independence of clearing and settlement boards. ASX aims to transform and modernise technology to enhance its critical market infrastructure.
To meet increased capital requirements of $150 million until agreed milestones are achieved, ASX will lower its dividend payout range to 75 to 85 per cent of underlying net profit after tax. The company will also operate a discounted dividend reinvestment plan for at least the next three dividends. This revision impacts the medium-term return on equity (ROE) target, which is now set at 12.5 to 14 per cent.
Despite these changes, ASX has confirmed that its fiscal year 2026 expense growth and capital expenditure (CAPEX) guidance remain unchanged. Total CAPEX is projected to be between $170 million and $180 million, reflecting ongoing investment in technology modernisation and strategic initiatives.
