Cloud Hosting

The Australian Stock Exchange (ASX) is progressing with the targeted delivery of the first phase of the CHESS replacement project in 2026, the exchange group announced.

According to feedback received on the proposed two-stage approach to implementation, the majority of respondents support a staged implementation of the CHESS replacement system.

ASX intends to proceed with its overarching approach of implementing CHESS replacement across two main releases, with Release 1 delivering the clearing services and Release 2 focused on settlement and subregister functionality.

Clive Triance, Group Executive at ASX for Securities and Payments, said: The completion of the first of two key industry consultations on CHESS replacement is a notable milestone and the strong support we received for our initial proposals reflect the detailed engagement and consultation undertaken in the reassessment of the solution design. This delivers a level of certainty over the first phase of the timeline of the project. We are pleased at the engagement from the industry on this consultation and would like to thank stakeholders for providing their feedback.

Last year, ASX abandoned a blockchain-based CHESS core system replacement, ending a partnership of eight years with Digital Asset after many delays and no final product in sight.

The exchange has since acknowledged further transparency will be needed to regain stakeholder trust in the technology direction of the program. It has since gone back to basics with its replacement strategy, under the watchful eye of the Reserve Bank of Australia and ASIC, and partnered with TATA Consulting Services.

ASX also invited feedback from stakeholders on the proposed criteria ahead of making the first development incentive payment under the $70 million program, CHESS Replacement Partnership Program.The Partnership Program is designed to recognize the important work that will be undertaken on a go-forward basis as ASX, together with industry, work together toward the successful progress and completion of the CHESS replacement project.

The purpose of the Partnership Program is to establish a framework to provide a financial contribution toward stakeholder participation with respect to the successful progress and completion of the CHESS replacement project. This includes any technological and other development activities necessary to successfully interface and interoperate with the CHESS replacement solution that ASX is developing.

See the article here:
ASX Now Aims To Deliver 1st Phase Of CHESS Replacement By 2026 - FinanceFeeds