The Australian Securities Exchange (ASX) has been working on upgrading its Clearing House Electronic Subregister System (CHESS) for several years now. The upgrade was supposed to replace the existing CHESS system with a blockchain-based platform that would offer faster and more efficient settlement of trades. However, the project has hit a major roadblock, and the blame game has begun.
The ASX has been working with Digital Asset Holdings, a blockchain technology company, to develop the new CHESS system. The project was initially scheduled to go live in 2020, but it has been delayed several times. The latest delay was announced in December 2020, when the ASX said that it would not be able to launch the new system until April 2023 at the earliest.
The delay has sparked a blame game between the ASX and Digital Asset Holdings. The ASX has blamed Digital Asset Holdings for the delay, saying that the company failed to deliver the promised technology on time. Digital Asset Holdings, on the other hand, has blamed the ASX for changing the scope of the project and adding new requirements that were not part of the original plan.
The ASX has also faced criticism from market participants who have expressed frustration with the delay. Some market participants have said that the delay is causing uncertainty and making it difficult for them to plan their trading strategies.
Despite the delay, the ASX remains committed to the project. In a statement, the exchange said that it is “confident that the new CHESS system will deliver significant benefits to the market and its participants.”
The new CHESS system is expected to offer several benefits over the existing system. It will be based on blockchain technology, which will enable faster and more efficient settlement of trades. It will also offer improved transparency and security, as all transactions will be recorded on a distributed ledger.
In conclusion, the ASX’s failed CHESS system blockchain upgrade has sparked a blame game between the exchange and Digital Asset Holdings. The delay has caused frustration among market participants, but the ASX remains committed to the project and is confident that the new system will deliver significant benefits. The new CHESS system is expected to offer faster and more efficient settlement of trades, improved transparency, and enhanced security.