Australian Securities Exchange (ASX) released a public consultation paper calling for feedback on the two-stage approach it has proposed for the delivery of CHESS replacement, as well as the proposed implementation plan for the clearing service, which is to be delivered in the first release.
CHESS is the clearing and settlement system for Australia’s securities market, and this consultation paper follows an extensive reassessment by ASX of the solution design for a replacement of CHESS that would serve the whole market. In November 2023 ASX announced it would proceed with a product based solution design for CHESS replacement that would be delivered by global technology provider TATA Consultancy Services (TCS).
As part of that announcement, ASX confirmed it was proposing to implement the new platform in two main releases, with the clearing service to be delivered in a first release and the settlement and subregister services to follow in a second release.
ASX Group executive for Securities & Payments, Clive Triance, said in a statement: “Our decision to proceed with the product based solution for CHESS replacement was deeply informed by extensive stakeholder engagement, and we know that this next phase will also rely on ASX gathering feedback to drive toward an industry consensus on detailed design and implementation planning. “This consultation paper covers the high-level project plan that has been proposed, and it will also focus on the scope and approach for (the first release) including messaging specifications, testing requirements and readiness activities.”
ASX has previously stated that the indicative timeframe for implementation of the first release is 2026 and that the scenarios being considered for the second release estimate implementation in 2028 or 2029.