ASX has today confirmed that 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 the ASX today published its response to comments received on the proposed two-stage approach to implementation and scoping and planning for the provision of clearing services.
CHESS is the clearing and settlement system for Australia’s securities market and this consultation paper follows an extensive re-evaluation by ASX of the solution design for a replacement of CHESS that would serve the entire market. In November 2023 the ASX announced it would move forward with a product-based solutions plan to replace CHESS to be delivered by global technology provider TATA Consultancy Services (TCS).
The majority of respondents support a phased implementation of the CHESS replacement system and the ASX intends to proceed with its general approach to implementing the CHESS replacement in two main releases, with Release 1 providing clearing services and Release 2 focusing on settlement functionality and sub-registration.
The launch date for Release 1 will be set with industry stakeholders as part of the completion of the Release 1 cut-off approach and migration approach documentation, which is targeted for publication in the second quarter of 2025.
On 14 March 2024, the ASX released Consultation Paper 1 on the proposed phase-in approach to the new CHESS replacement system and the implementation of Version 1, clearing services.
The ASX sought comments on:
- phased approach and timetable for replacing CHESS in two separate releases (Circulations 1 and 2).
- Planning, Scope and Timeline for Release 1. and
- industry testing approach for Version 1.