ASX Teams Up with TCS for New Trading System After Blockchain Setback

20 Nov 2023 , 12:50 PM

ASX Ltd partners with Tata Consultancy Services (TCS) for a new trading, clearing, and settlement system. The new platform will be implemented in two main releases, with clearing services in the first release and settlement and sub-register services in the second.

Estimated cost for the first release of the CHESS project is between A$105 million and A$125 million. ASX aims to provide a reliable, supportable, and scalable platform for the Australian market.

Initial attempts to overhaul CHESS using blockchain technology faced backlash from ASIC and the Reserve Bank of Australia, leading to the abandonment of the project.

ASX plans to engage with the market on the detailed design of the CHESS Replacement program with an implementation timeline. The estimated timeframe for the first release implementation is 2026, and for the second release is 2028 or 2029.

ASX also partners with Accenture for additional capability and capacity in project delivery. Further stakeholder consultation for the next phase of the CHESS replacement project is set to start in the first quarter of 2024.

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