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ASX to delay Chess replacement system by a year

ASX to delay Chess replacement system by a year

The Australia Securities Exchange is to delay the roll out of its post-trade blockchain platform by a year, citing the global Covid pandemic and operational load on market participants.

The ASX has been working with DLT specialist Digital Asset since 2017 to replace its Chess post-trade settlement system with a blockchain-based platform. Set for go-live in April 2021, the Exchange confirmed a pause in March to seek user input on the schedule.

One of the main share registry companies in Australia, Computershare, told the Financial Times (FT) on June 25 that it was seeking a two-year delay to the implementation because the project “lacked clarity" around technical aspects, fee structures and regulatory status.

Peter Hiom, ASX deputy CEO, says: “We have listened to the diverse views of stakeholders and accommodated feedback on timing, user readiness and changes to functionality. We have made great progress in challenging circumstances and are focused on delivering the solution in a safe and timely manner.

"ASX remains committed to the project and to working constructively with all stakeholders to ensure we deliver a solution that balances the interests of the whole market.”

He says ASX will confirm the new go-live date as soon as possible after a four-week consultation with market participants.

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