The Australian Securities Exchange (ASX) is replanning the Clearing House Electronic Subregister System (CHESS) replacement implementation timetable due to the uncertainty created by the COVID-19 pandemic.
CHESS is the computer system, based on distributed ledger technology, used by ASX to manage the settlement of share transactions and to record shareholdings.
In May last year, ASX opened the customer development environment for its new equities clearing and settlement system to replace CHESS.
The replacement of the CHESS system was scheduled for April 2021 but in June this year, ASX will seek user input on the new schedule that will move the go-live to a later date.
The opening of the industry test environment still targeted for July 2020, according to ASX.
The replan will allow extra time for users to complete operational readiness activities and to consider the rule changes that accompany the new system.
It will also increase the time available for back-office software developers to familiarise themselves with key aspects of the new system in a production-like testing environment, enabling them and ASX to complete software development and testing.
ASX deputy CEO Peter Hiom, said: “We are conscious of the importance of providing a new schedule, and the need to get the valuable input of CHESS users. Right now, however, in this environment of heightened volatility and activity levels, the industry needs to focus on day-to-day operations.”
“We will, therefore, wait until June to consult on the new timetable when we expect everyone will have more time to consider the replan and better assess the implications of COVID-19. We will then announce the new schedule.”
Hiom added: “ASX remains fully committed to CHESS replacement. We continue to progress the project, including system development and testing, supporting back office software developers, and assisting users in their readiness activities.”
