ASX (ASX:ASX) has raised its spending guidance for FY26 as it moves to "reset" its operations in response to an ASIC inquiry.
The market operator now expects its core expenses to grow by 13% to 15%, a significant jump from its previous estimate of 8% to 11%.
When including one-off costs related to the regulatory inquiry and legal fees, total expense growth is projected to reach as high as 23%.
The increased spending is primarily directed at strengthening risk management, governance, and technology infrastructure.
This shift follows interim findings from the Australian Securities and Investments Commission, which highlighted a need for the ASX to bolster its role as critical market infrastructure.
Higher costs are also being driven by increased legal fees and a slower-than-expected transition to digital statements during a period of intense trading activity.
Despite the rising costs, the exchange reported a solid financial performance for the first half of FY26.
Operating revenue climbed 11.2% to $602.8 million, fueled by high volumes in cash market trading and interest rate futures.
This growth translated to a 3.9% rise in underlying net profit, reaching $263.6 million.
However, the underlying return on equity remained flat at 13.5%, as higher earnings were balanced out by stricter regulatory capital requirements.