The Australian Securities Exchange (ASX) has released a consultation paper seeking feedback for the revised timeline to replace the Clearing House Electronic Subregister System (CHESS).
Having previously announced in March of this year that replacement of the distributed ledger technology (DLT) platform would be impacted by the COVID-19 pandemic, ASX delayed formal consultation until June.
The delay allowed CHESS users to concentrate on daily operational activities during an unprecedented global environment, while ASX determined the impact of the pandemic and specific requests for change.
Furthermore, the delay facilitated significant process, as the CHESS replacement application and DLT have been transferred to multiple ASX technological platforms, a seventh software released on schedule, and ASX published functional specifications and messaging requirements for software providers to develop the new system.
The consultation paper addresses key considerations such as requested functional changes, recent market activity in the pandemic, operating rule amendments, and feedback from CHESS users on the delay. It also evaluates the readiness of both users and software providers.
Peter Hiom, deputy CEO of ASX, commented: “ASX has undertaken a comprehensive, risk-based approach to the replan of the CHESS replacement project. We have listened to the diverse views of stakeholders and accommodated feedback on timing, user readiness and changes to functionality.”
He continued: “At its core, the new CHESS system will deliver existing services, new and enhanced functionality, high availability, reliability and performance, and will underpin Australia’s financial markets for the next decade and beyond. We have made great progress in challenging circumstances and are focused on delivering the solution in a safe and timely manner.”
Although subject to user feedback, the new target go-live stands at April 2022, 12 months beyond the original target go-live date.
The consultation is open for four weeks until 28 July 2020.
