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The Australian Securities Exchange (ASX) announced in a press release that it has delayed its blockchain implementation due to the COVID-19 pandemic. There will be formal consultation in June, but the system development will continue.
“In light of recent events, ASX is replanning the implementation of the CHESS replacement system. We are conscious of the importance of providing a new schedule, and the need to get the valuable input of CHESS users,” said ASX Deputy CEO Peter Hiom.
“Right now, however, in this environment of heightened volatility and activity levels, the industry needs to focus on day-to-day operations. We will, therefore, wait until June to consult on the new timetable when we expect everyone will have more time to consider the replan and better assess the implications of COVID-19. We will then announce the new schedule,” ASX wrote.
Due to this decision, the go-live date which was set to April 2021 will be moved to a later date. However, in the meantime, the target of opening an Industry Test Environment (ITE) will remain in July.
The delay will give users more time to prepare and consider the rule changes that accompany the new system. It will also give back office software developers more time to familiarize the key aspects of the new system and help them and ASX complete software development and testing.
ASX also said that the consultation has been thorough and it will continue to listen to its stakeholders and they will work through it together. ASX stressed that its priority is to ensure the orderly and completion of the project with continued oversight of its regulators. ASX also thanked everyone for their ongoing support during he replanning process.
“ASX remains fully committed to CHESS replacement. We continue to progress the project, including system development and testing, supporting back office software developers, and assisting users in their readiness activities. The investments we are making in the new system and in distributed ledger technology are for the long-term benefit of the financial services industry and the Australian economy,” Hilom concluded.
Meanwhile, in August 2019, ASX partnered with Digital Asset and VMware, a leading cloud computing software provider to launch distributed ledger technology (DLT) initiatives in Australia and New Zealand.
