In a statement, the stock exchange operator expressed that the selected product will enable them to offer a dependable, well-supported, and scalable platform that caters to the current and future requirements of the Australian market.
On Monday, ASX Ltd, the Australian stock exchange operator, announced its collaboration with Tata Consultancy Services (TCS) to develop a product-based solution, replacing its existing trading, clearing, and settlement system.
In an official statement, the stock exchange operator mentioned, "ASX believes that the selected product will enable the provision of a dependable, well-supported, and scalable platform that aligns with the present and future requirements of the Australian market."
The Australian stock exchange operator specified its plan to roll out the new platform in two primary phases. The initial release will focus on delivering the clearing service, followed by the second release incorporating settlement and sub-register services.
ASX CEO Helen Lofthouse emphasized, "This upcoming project phase will span several years, during which ASX will continue investing in the current CHESS platform to ensure its ongoing efficiency and reliability until the replacement is deployed."
Additionally, ASX highlighted the estimated cost for the first release of the Clearing House Electronic Subregister System (CHESS) project, ranging between A$105 million ($68.33 million) and A$125 million, to be spread across multiple years.
The bourse operator further announced that the CHESS replacement project is progressing to the next phase of design and implementation, with additional stakeholder consultation slated to commence in the first quarter of 2024.
It's important to highlight that the exchange operator has faced increased scrutiny lately, particularly as Australia has enacted laws to foster competition in post-trade settlement and clearing within financial markets. This development follows ASX's decision to halt an expensive rebuild of its CHESS platform last year.
ASX had initially sought to replace its outdated CHESS software with blockchain-based technology. However, in November of the previous year, the project was abandoned due to issues related to ineffective management, concerns about the product's complexity and scalability, and challenges in securing expertise to support the initiative.
