Australian Securities Exchange (ASX) delays the launch of its blockchain settlement system to an unspecified date
The Australian Stock Exchange (ASX), also known as the Sydney Stock Exchange, has further delayed the launch of its Blockchain settlement system to an unspecified date amid the Coronavirus pandemic.
This blockchain settlement system will replace the ASX Clearing House (CHESS) electronic underreporting system, a computer system used by the Australian Stock Exchange (ASX) to record participations and manage the settlement of stock transactions.
ASX made the announcement in a press release published Wednesday March 25. According to the press release, the delay is also due to user response on time, requested functionality changes, and the need for ASX to complete aspects of its own preparation.
ASX, as reported, has been working with two blockchain companies Digital Asset (DA) and VMware to replace their 25-year-old CHESS system with a blockchain-based settlement system for the past three years.
The initially proposed blockchain settlement system was planned for late 2020. It was later delayed until April 2021, but is now further delayed until an unspecified date. ASX said it was in continuous discussion with users about the project schedule. Some users asked for more time to prepare and some requested changes to the functionality of the new system. The ASX also needs more or more time to complete some of its development and preparation activities.
These problems were under consideration before the COVID-19 pandemic, but the recent outbreak has created greater uncertainty around the project. Therefore, the launch has been postponed to an unspecified date. Therefore, ASX will hold consultations with users in June before the end of the new hours.
Peter Hiom, ASX Deputy CEO, said:
“In light of recent events, ASX is re-planning the implementation of the CHESS replacement system. We are aware of the importance of providing a new schedule and the need to obtain the valuable input from CHESS users. At this time, however, in this environment of increased volatility and activity levels, the industry needs to focus on daily operations. Therefore, we will wait until June to consult on the new schedule, when we hope that everyone will have more time to consider the plan and better assess the implications of COVID-19. and then we will announce the new schedule ».
However, ASX announced that the Industry Test Environment (ITE) would open in July to validate systems, processes, and procedures. Until October 2020, ITE will be open to all users.
Peter Hiom concluded:
“ASX remains fully committed to replacing CHESS. We continue to move forward on the project, including development and testing of the system, supporting back office software developers and assisting users in their preparation 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. ”
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