The Australian Stock Exchange, ASX Ltd (ASX: ASX) share price has risen today. This is on reports of a major restructure within the Chief Executive Officer’s direct reports.
At the time of writing, shares in the security exchange service provider are swapping hands for $80.75, up 1.3%.
Shake up after outage
Whether the market is yet to realise, or if investors are looking on the news positively, the main exchange provider in Australia is moving upward this afternoon on the latest news.
According to reports, the company is undergoing a quiet but significant reshuffling of management responsibilities. Word on the street is these actions are the consequence of the trading outage experienced last year. This outage also did damage to the ASX share price, falling 5% in 5 days.
Correspondingly, a report conducted by IBM is expected to be released after ASX reports its earnings (ASX Earnings Calendar). This report will likely detail issues surrounding the high reliance brokers have on the ASX for making trades, and risk management protocols in place by the ASX in the event of future outages.
Potentially to address these matters, it is believed that the restructuring has resulted in the creation of four new businesses. These include listings, markets, technology and data, and securities and payments. While not much more is known at this stage, its understood further details will be provided on the release of results.
The shake-up entails the jostling around of 5 out of the 10 direct reports of CEO Dominic Stevens. In addition to, the pushback of the CHESS replacement project and the resignation of Peter Hiom (Deputy CEO), and David Raper (Executive General Manger of Trading Services).
A spokesperson for the company stated:
The purpose of the review is to ensure ASX’s structure best reflects strategic priorities, enhances accountability, sharpens focus on customers, and supports growth.
ASX share price snapshot
The ASX share price has been trying to climb its way back to where it was a year ago. Over the past six months, it has managed to regain 12.4%. However, the company’s shares remain 3.5% weaker on the 12-month time scale.
Currently, the company trades on a price-to-earnings (P/E) ratio of 30.7 times. Investors will see whether this ratio increases or decreases following its earnings in two weeks’ time.