ASX Expects More Delays on Blockchain-Based CHESS Go-live Replacement Date


The Australian Securities Exchange (ASX) has built the world’s first industrial-scale blockchain use case – a new post-trade solution to replace the legacy Clearing House Electronic Subregister System (CHESS) platform, which has been in place for more than 25 years. running .

The organization had initially expected the system to be ready for industrial testing in July 2020, which would have resulted in the system being ready to go live in April 2021.

However, the ASX has revised its implementation schedule for replacing CHESS due to the COVID-19 pandemic. To that end, it announced at the time that the CHESS platform would be ready in April 2022.

This date was then revised months later to April 2023. During the organization’s half-year 2022 results in February, ASX CEO Dominic Stevens confirmed that the organization is still on track to achieve this.

On Monday, the ASX announced that the April 2023 go live date is likely to be postponed — again.

“ASX has advised that there is a high probability of a delay to the go-live date,” said Tim Hogben, ASX group president, in a statement to shareholders.

This time, the ASX is blaming Digital Asset, the company that CHESS is building along with the ASX.

According to the ASX, the next software release is expected to be received, tested and deployed in the Industry Test Environment 1 (ITE1) no earlier than the end of April.

The next software release is expected to include the next iteration of non-functional application tuning and code fixes, as well as a software candidate for providers to accredit against. Due to the software delay, ASX said the accreditation commencement schedule will vary, some starting in July and others as early as August.

Also on Monday, the ASX said customer onboarding in the dedicated ITE2 environment will now open on April 27, rather than April 18 in a “phased approach,” starting with a dedicated onboarding period that will set up certificate management. includes.

“This approach takes lessons from the onboarding and testing of ITE1 – which required focused attention and time – and enables the known complexity involved in securely updating, connecting and testing technology across multiple parties and jurisdictions,” Hogben said.

The ASX added that due to delays in customer onboarding, it expects dress rehearsals for the migration will not begin in October, as initially planned.

“We recognize the impact these changes will have on our customers’ programming activities and apologize for the inconvenience. We will be actively working with all stakeholders to assess the flow-through effects of these schedule changes on project milestones, industry testing, operational readiness, migration rehearsals and implementation [go-live]Hogben said.

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