ASX Resets Launch Date for CHESS Replacement system

The Australian Securities Exchange​​ (ASX) has announced that it has postponed the launch of the CHESS replacement system until April 2023 to increase project scope. The new launch date represents a 12-month extension to the proposed date consulted upon mid-year. 

CHESS is the core system that performs the processes of clearing, settlement, asset registration, and some other post trade services which are critical to the orderly functioning of the market. 

According to ASX's statement, this change is a result of its careful consideration of the feedback from the 100 organisations that participated in the extensive  industry consultation, engagement with regulatory agencies, detailed discussions with our technology partners, and completion of a comprehensive project review. 

While most CHESS users indicated that they could meet the proposed go-live date of April 2022, many asked for extra industry testing, more time to prepare for the new system and additional functionality that reduces manual processes (such as electronic corporate action elections) to be delivered as soon as possible. 

Dominic Stevens, ASX Chief Executive Officer, said: "ASX has listened to the industry, regulators and its  technology partners throughout this project. It is clear that COVID-19 continues to impact the whole industry, including ASX, and this has evolved what our stakeholders want from the CHESS replacement system. In parallel, ASX has considered how we can reduce delivery risk, enhance the customer experience and continuously improve project execution. Consequently, we have increased the scope of the project and extended the timeline."

Prior to the implementation of the CHESS replacement system, ASX will continue to invest in the current CHESS system, including strengthening its resilience, capacity and processing efficiency. ASX is confident the current  CHESS system will continue to support the industry during the extended timeframe.