The ASX says 'sorry' to its shareholders for the 'regrettable' outage

Mark Kolbe/Getty Images.

The ASX has made a public apology to its shareholders for the major outage last week.

At the AGM in Sydney today, both the chairman Rick Holliday-Smith and the CEO, Dominic Stevens, told shareholders the ASX failed to live up to its own high standards.

Holliday-Smith: “We are sorry for the considerable disruption to market users, including retail investors. We put significant effort into building the resilience of our platforms. We will now do even more.”

Stevens: “Clearly, the events of last Monday did not reflect the standards to which we hold ourselves. I am sorry for the disruption it caused.”

The CEO says the ASX prides itself on its strong record of uptime and reliability. He released this chart, a three-year moving average of yearly uptime across five major customer-facing systems:

Source: ASX

“In the 10 years to 30 June, our equities trading system has been available 99.96% of the time and in seven of those years we saw not a single minute of downtime,” says Stevens.

“Our other major systems demonstrate similar reliability.

“Last Monday was regrettable. People are understandably upset because it rarely happens. Nevertheless, we are working hard to make our systems even more resilient.”

The source of the issue was a hardware malfunction related to a database.

Stevens, whose base pay is $2 million, plus short and long term incentives, has only been managing director and CEO of the ASX since August 1.

He replaced Elmer Funke Kupper who resigned in March after it was revealed that there was an investigation by Australia Federal police into Tabcorp and $200,000 paid in 2010 to the family of Cambodian prime minister Hun Sen. At that time, Kupper was the CEO of the betting group.

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