ASX Limited has revised its fiscal year 2026 expense growth guidance upwards following an assessment of investment requirements after the interim findings of the Australian Securities and Investments Commission’s (ASIC) inquiry. The increased spending will primarily focus on bolstering risk management and upgrading technology infrastructure. ASX is the operator of Australia’s primary securities exchange, providing trading, clearing, and settlement services. It facilitates capital raising and secondary market trading for listed companies.
Excluding ASIC inquiry-related costs, ASX now anticipates expense growth of between 13 and 15 per cent for FY26, a notable increase from the previous guidance of 8 to 11 per cent. When incorporating inquiry-related and other one-off expenses, total expense growth is projected to be in the range of 20 to 23 per cent, compared to the earlier forecast of 14 to 19 per cent. The company attributed the rise to additional investment aimed at reinforcing its position as critical market infrastructure.
This decision follows the inquiry panel’s recommendation for a “reset” of governance, risk management, and technology priorities. Furthermore, the slower adoption of e-statements during periods of high trading volumes, coupled with increased legal costs, has also contributed to the upward pressure on expenses. These factors prompted the ASX to increase spending.
Alongside the updated expense guidance, ASX released unaudited first-half FY26 results, revealing an 11.2 per cent increase in operating revenue to $602.8 million, driven by robust cash market trading, clearing and settlement activity, and interest rate futures volumes. Underlying net profit rose by 3.9 per cent to $263.6 million, while statutory profit saw an 8.3 per cent increase, with no significant items reported. ASX indicated that FY27 expense growth guidance will be provided at its June 2026 investor forum, with additional details on the first-half result expected on February 12.
