The Australian Securities Exchange (ASX) has engaged consultants from Accenture to assess its delayed blockchain-based post-trade network.
The ASX has partnered with Digital Asset, a distributed ledger technology specialist, since 2017 to develop a blockchain platform intended to replace its Chess post-trade settlement system. Originally scheduled to launch in April 2021, the project has faced several setbacks.
In a statement regarding Accenture’s appointment, the ASX noted, “ASX and Digital Asset, our application software provider, have identified that more development is required than previously anticipated to meet ASX’s scalability and resilience requirements for the application. This is contributing to delays in delivering the remaining technical components of the application.”
The ASX has indicated that Accenture’s review will help determine the necessary steps to communicate a revised timeline for project completion, with expectations that the go-live date will not occur before late 2024.
Australia’s securities regulator and central bank have expressed their disappointment regarding the slow progress of the initiative. RBA Governor Philip Lowe remarked, “The delay in the go-live date for the Chess replacement system is disappointing. The review initiated by ASX is an important step in ensuring 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.”
Responding to concerns from the market, ASX’s managing director and CEO, Helen Lofthouse, stated, “I know our customers will be as disappointed as I am with the uncertainty about the timeline for completion. I apologize for the uncertainty and thank them for their close and constructive work with us on this important project.”