On 28 July, the four-week consultation period on a proposed new implementation schedule for the system to replace CHESS concluded. ASX thanks all respondents for their submissions and helpful insights.
ASX said it was now reviewing the consultation feedback and following up with some CHESS users on points of detail they raised in order to meet the proposed implementation timetable.
According to an ASX statement, early results show an overwhelming majority of CHESS users can meet the proposed timetable for implementing CHESS. Despite the high number of positive responses, no final decision on the revised schedule has been made, and it remains subject to a detailed review of all submissions and any other relevant considerations before being finalized, said ASX.
As of Tuesday, August 4:
- 88 submissions have been received, representing 92% of the 96 CHESS users
- 91% of CHESS users who made submissions can meet the revised go-live date for CHESS replacement of April 2022
- The few exceptions not yet able to confirm readiness have asked for more information on particular issues, which ASX will assist with in the near-term.
ASX defines CHESS users as those organizations that plan to connect to the new system, including clearing and settlement participants, product issuer settlement participants, approved market operators, back office software developers, payment providers and share registries.
“The project has taken on even greater significance in recent months, with the accelerating need for more innovation, digitization and straight-through processing of transactions and corporate actions,” said Dominic Stevens, ASX Managing Director and CEO. “The CHESS replacement project has involved the most interaction ASX has ever undertaken with the market. It provides us with a sound starting point as we now carefully consider all submissions,” he added.
The exchange said it was currently following up with CHESS users that haven’t responded to ensure as much input as possible is received from those organizations that must accredit their systems and/or attest to their operational readiness prior to go-live, and insisted that their feedback is important for the safe and timely transition to the new system.
“While recognizing there is still much for everyone to do, we are excited by the fact we are close to 100% complete on customer functionality and set to move into industry-wide testing in the coming months,” Stevens concluded.