ASX’s CHESS system blockchain upgrade failure sparks blame game

The Australian Securities Exchange (ASX) has been working on upgrading its Clearing House Electronic Subregister System (CHESS) to a blockchain-based system for the past few years. However, the project has hit a major roadblock, with the ASX announcing that it has decided to delay the launch of the new system until 2023.

The ASX’s decision to delay the launch of the new CHESS system has sparked a blame game between the exchange and its technology partner, Digital Asset Holdings (DAH). DAH was responsible for developing the blockchain-based system for the ASX, but the exchange has accused the company of failing to deliver on its promises.

According to the ASX, DAH’s technology did not meet the exchange’s requirements, and the company failed to deliver on key milestones. The ASX also claimed that DAH’s technology was not scalable enough to handle the volume of transactions that the exchange processes on a daily basis.

DAH, on the other hand, has denied the ASX’s claims and has accused the exchange of changing its requirements mid-project. The company has also claimed that the ASX did not provide enough resources or support for the project.

The failure of the ASX’s blockchain upgrade is a significant setback for the exchange, which had hoped to become one of the first major stock exchanges in the world to adopt blockchain technology. The new CHESS system was expected to improve efficiency, reduce costs, and increase transparency for market participants.

The delay in launching the new system is also likely to have financial implications for the ASX. The exchange has already spent millions of dollars on the project, and the delay is likely to result in additional costs and lost revenue.

The failure of the ASX’s blockchain upgrade highlights the challenges that companies face when implementing new technologies. Blockchain technology is still relatively new, and there are few examples of large-scale implementations in production environments.

The ASX’s experience also underscores the importance of effective project management and communication between technology partners and clients. Both parties need to have a clear understanding of project requirements, timelines, and deliverables to ensure that projects are completed on time and within budget.

Despite the setback, the ASX remains committed to implementing a blockchain-based system for CHESS. The exchange has said that it will continue to work with DAH to develop a new system that meets its requirements and is scalable enough to handle its transaction volume.

In conclusion, the failure of the ASX’s blockchain upgrade is a cautionary tale for companies looking to adopt new technologies. While blockchain has the potential to revolutionize many industries, it is important to approach implementation with caution and to ensure that all parties involved have a clear understanding of project requirements and timelines.

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• Source: Plato Data Intelligence.