Stock exchange operator ASX Ltd has broken its promises to the market yet again after announcing this morning that their long awaited blockchain project won’t be going live until at least 2024.
ASX and its application provider Digital Asset have realised that their scalability and resilience requirements require some more looking into they realised to meet the software meets. Now they have enlisted Accenture to review the work needed to deliver the application. They will work to help ASX communicate a new timetable for its implementation.
CHESS which stands for Clearing House Electronic Subregister System, facilitates the transfer of ownership of all ASX shares bought or sold. It also provides an electronic subregister for shares in listed companies. The ASX began working on the CHESS replacement system in 2015. The company said it would likely miss its anticipated April 2023 implementation in March before confirming the delay in May.
Both ASIC and the RBA also commented on the disappointing news, with Governor Phil Lowe:
“The review initiated by ASX is an important step in providing assurance that the new CHESS application software will be fit for purpose. The replacement system must be safe and reliable to maintain investor confidence and the stability of Australia’s financial system.”
ASX managing director and CEO Helen Lofthouse stated:
“CHESS is a critical system and we must have high confidence in the schedule to deliver new CHESS safely…. Existing CHESS remains secure and stable and continues to perform well as we transition to a replacement CHESS system.”