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The Clearing House Electronic Subregister System (CHESS) replacement by the Australian Securities Exchange will be implemented in two stages, with the clearing phase set to be launched in 2026 and the settlement and sub-register phases to follow in either 2028 or 2029.

This decision was made after the exchange terminated the software developed in collaboration with Digital Asset in November 2022, which had been in development for over 8 years and faced numerous delays.

The CHESS replacement project is a monumental undertaking for the ASX. The original system, developed in the 1990s, has been the backbone of the ASXs operations for over two decades. However, the rapid advancement of technology and the increasing complexity of financial transactions necessitated a more robust and flexible system.

The replacement project was initially planned in collaboration with Digital Asset, a software company specializing in distributed ledger technology. However, after more than eight years of development and delays, the ASX made the strategic decision to scrap the initial plans with Digital Asset in 2022.

In November 2022, the ASX announced that it had chosen Tata Consulting Services (TCS) to run the new CHESS replacement project. TCS, a global leader in IT services, consulting, and business solutions, emerged as a fitting choice for this complex and critical project.

The new CHESS replacement will be delivered in two phases, with clearing to be rolled out first in 2026, followed by settlement and sub-register in either 2028 or 2029.

The new system will offer numerous benefits, including increased efficiency, flexibility, and security. It will also provide a more robust platform for the ASX to develop new services and products, further enhancing its position in the financial sector.

However, the project also presents challenges. The transition to the new system will require careful management to ensure minimal disruption to the ASXs operations.

Furthermore, the ASX will need to work closely with its stakeholders, including brokers, investors, and regulators, to ensure a smooth transition.

Originally posted here:
ASX's CHESS Replacement Project to be Staggered - The Global Treasurer