The Clearing House Electronic Subregister System (CHESS), the ASX's primary trading service, will not be replaced by a blockchain-based system as planned.
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The ASX has issued an apology for scrapping a multi-year initiative to update its clearing and settlement infrastructure. A charge of AUD $245-255 million pre-tax ($172-179 million after tax) has been written down due to the decision, which was taken "in light of the solution uncertainty," it added.
Uncertainty about how ASX regulations interact with the application and underlying ledger were among the difficulties and "major obstacles" found by the independent audit conducted by Accenture.
As stated by ASX Chair Damian Roche, they have determined that continuing along the current route would not be enough to fulfill the stringent requirements of ASX and the market. Major issues exist in the areas of technology, governance, and service delivery.
To replace its CHESS system, which had been in operation for 25 years to keep track of shareholdings and handle transaction settlements, ASX has been working on a distributed ledger technology (DLT) solution. It was originally planned that the system would go live in 2020, but it has been repeatedly delayed.
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