ASX today confirmed it is progressing with the targeted delivery of the first phase of the CHESS replacement project in 2026, as previously announced in November 2023.
This comes as ASX today released its response to feedback received on the proposed two stage approach to implementation and the scope and design for delivery of clearing services.
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).
The majority of respondents support a staged implementation of the CHESS replacement system and 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.
The Release 1 go-live date will be set with industry stakeholders as part of finalising the Release 1 Cutover and Migration Approach documentation, targeted for publication in Q2 2025.
On 14 March 2024, ASX released Consultation Paper 1 on the proposed staged implementation approach to the new CHESS replacement system and implementation of Release 1, clearing services.
ASX sought feedback on the:
- staged approach and timing for replacing CHESS in two separate releases (Releases 1 and 2);
- design, scope and schedule for Release 1; and
- industry testing approach for Release 1.
