ASX delays blockchain-based Chess replacement start

The COVID-19 crisis has forced the ASX is to suspend its planned start of its blockchain based replacement for its CHESS clearing system.

The ASX has put its move to blockchain-based clearing on hold. Picture: Getty Images

The COVID-19 crisis has forced the ASX is to suspend its planned start of its blockchain based replacement for its CHESS clearing system which was due to go live in April next year.

The ASX announced today that it was postponing the start date because of the “uncertainty created by the unfolding COVID-19 pandemic.”

The ASX said it would go ahead with its plans to test the system from July this year but it said that it would delay the “go live” date scheduled for April 2021 because of difficulties in consulting with users over the next few months.

“In the light of recent events, the ASX is replanning the implementation of CHESS replacement system,” ASX deputy chief executive officer Peter Hiom said.

He said the ASX was conscious of the importance of providing a new schedule and the need to get input of CHESS users.

“Right now, however, in this environment of heightened volatility and activity levels, the industry needs to focus on day to day operations.”

“We will therefore wait until June to consult on the new timetable when we expect everyone to have more time to consider the replan and better assess the implications of COVID 19.”

“We will then announce the new schedule.”

He said the extended start date would allow more time for users to complete their operational readiness activities and to consider the rule changes which accompanied the new system.

It would also increase the time for back office software developers to familiarise themselves with key aspects of the new system and to enable them and the ASX to complete software development and testing.

Mr Hiom said the ASX remained fully committed to replacing its CHESS system.

“We continue to progress the project, including system development and testing, supporting back office software developers and assisting users in their readiness activities.”

“The investments we are making in the new system and in distributed ledger technology are for the long term benefit of the financial services industry and the Australian economy,” he said.

The ASX said it will begin consultations with users on a new schedule for the start of the replacement in June.

It will begin opening the system to software developers in July for testing.