CHESS Replacement

A secure & contemporary replacement system using global standards.
Offering a better way to deliver market efficiencies and innovation opportunities.

Building core and contemporary infrastructure to advance Australia's reputation as a leading economy

ASX is replacing CHESS, its well-functioning but ageing clearing and settlement system, with enhanced technology that will create new opportunities for the Australian market. When it goes live, the new system will offer richer functionality, adopt global standards and use contemporary technology.

It will also provide the option of accessing distributed ledger technology (DLT), which will deliver information more efficiently and stimulate competition by enabling anyone to build new services.

ASX has a history of innovating and upgrading systemically important systems. It is part of what we do. We believe this new system - sitting on new infrastructure - will create a foundation for the next decade and beyond.

Latest updates

On 30 April 2021, ASX published updates to technical documentation relating to CHESS UI Connectivity and ASX procedure and guideline updates relating to Corporate Actions. Release notes providing full details can be found here.

On 23 April 2021, the CHESS Replacement newsletter was published for April 2021 and can be accessed here.

On 16 April 2021, ASX published updates to technical documentation relating to new features in CDE for mFunds including application and redemption orders, settlement and investor data related workflows. Separately, two new demand reports are also available for testing. Release notes providing full details can be found here.

On 14 April 2021, ASX provided an update on the changes following feedback from consultation on netting & settlement workflow. ASX is carefully considering all responses and will now take time to finalise the solution design. The revised solution is expected to reduce the development and testing effort for software providers and lower overall operational impacts on participants. Consequently, the messaging requirements and functional specifications will be deferred and a revised date for publishing the updated messaging requirements and functional specifications will be provided in mid-May 2021. The go-live date for the CHESS replacement project remains unchanged.

On 9 April 2021, ASX published the Q&A generated in the Implementation & Transition Webinar held 31 March 2021. The Q&A, webinar recording & presentation materials are available here.

On 7 April 2021, ASX published an information paper for issuers about CHESS Replacement readiness activities and changes that may require action in advance of go-live.

An updated clearing and settlement system

ASX’s CHESS Replacement project will replace an existing, aged COBOL system, with a system built on Java and DAML – the Digital Asset Modelling Language – which has also been chosen by the International Swaps and Derivatives Association (ISDA) to standardise the OTC derivatives world.