Stakeholder engagement

Collaborating with all stakeholders across a broad range of forums to educate, support, build and test a new system for a seamless transition

Stakeholder engagement

ASX has given careful consideration to how best we engage with industry to elicit the feedback required from all stakeholder groups to develop and implement the system that will replace CHESS. To date, we have adopted an approach involving both formal broad-based public consultation, and a range of committee and working group forums. These stakeholder forums have sought input across the spectrum from high level business requirements and functionality to detailed technical information. ASX will continue to undertake a mix of public consultation and direct engagement with users throughout the project. Bilateral engagement will also be undertaken where required to respond to customer queries and discuss particular topics in greater detail.

Engagement forums

The key forums for engaging with stakeholders are the Business Committee; Technical Committee; Connectivity & Integration Working Group; Implementation & Transition Working Group; and Focus Groups. The calendar of events will be updated over time and is subject to change. ASX will send out invitations to relevant attendees prior to each event.

Implementation & Transition Working Group

Invitees: any stakeholders impacted by CHESS Replacement (including but not limited to representatives from all clearing and settlement participants, PISPs, AMOs, software vendors, share registries, payment providers and relevant industry associations.

Connectivity and Integration Working Group

Invitees: representatives from clearing and settlement participants, AMOs, software vendors and share registries.

Focus Group

Invitees: varies each session, having regard to representation from a range of stakeholder cohorts relevant to the particular topic, including heavy users of functionality or because of feedback received via consultation/prioritisation survey.

ISO 20022 Technical Committee

The adoption of ISO 20022 is a major work stream for the CHESS Replacement project and members of the Committee will be involved in the detailed work associated with this work stream.

Public consultation

2020 Consultation on the CHESS Replacement Revised Implementation Timeline

On 30 June 2020, ASX released its consultation paper on the CHESS Replacement Revised Implementation Timetable. The paper set out key project activities and milestones including system development and testing, user testing, technical accreditation, operational readiness and operating rule amendments.

Feedback was sought from CHESS users on their ability to meet a revised implementation timetable produced by ASX, with a new go-live date of April 2022 (12 months beyond the original target go-live) to:

provide additional time for the ongoing impact of the COVID-19 pandemic on all stakeholders;
accommodate functionality changes requested by users; and
have a longer period for ASX and CHESS users to complete their respective development and readiness activities.

The consultation period closed on 28 July 2020 and ASX issued a media release with early observations on 5 August 2020.

On 28 October 2020, ASX released its response to consultation feedback on the CHESS Replacement Revised Implementation Timetable. The paper includes a summary of the responses received from 100 organisations and confirms the new go-live date as April 2023. It also involved engagement with regulatory agencies, detailed discussions with our technology partners and completion of a comprehensive project review.

A copy of ASX’s media release can be found here.

ASX has been engaging with regulators in relation to the rules and other relevant regulatory aspects that need to be addressed to support any new or changed services and functionality for the new system, including our consultation process on the rule amendments involving three tranches of amendments.

The first tranche of operating rule amendments was released for public consultation on 15 November 2019, with the period for feedback closing on 17 January. ASX released its response to consultation feedback on the tranche 1 rule amendments on 22 May 2020.

The second tranche of operating rule amendments was released for public consultation on 21 February, with the period for feedback closing on 29 May. ASX released its response to consultation feedback on the tranche 2 rule amendments on 24 September 2020.

ASX proposes to undertake a further rules consultation incorporating both the tranche 3 draft rule amendments and a consolidated rules package (across the three tranches). ASX will provide an update on the timing for this further rules consultation as part of its response to consultation feedback on the consultation paper on the new CHESS replacement timetable which it released on 30 June 2020.

Public Consultation on Tranche 1

On 15 November 2019, ASX released a consultation paper on the first of three tranches of operating rule amendments required to facilitate the implementation of the new system that will replace CHESS. These relate to accounts, participants, securities and pre-settlement aspects for Day 1 CHESS replacement system functionality.

The consultation paper invited feedback from users and other stakeholders on the operation of the draft tranche 1 rule amendments, including any unintended consequences.

Written submissions closed on 17 January 2020. ASX received a total of 12 submissions from a range of stakeholders including participants, registries, industry bodies and vendors.

On 22 May 2020, ASX released its response to consultation feedback received on the tranche 1 draft rule amendments. The response to consultation feedback contains:

a summary of feedback received in stakeholder submissions;
ASX's response to such feedback; and
the draft rules changes made to the ASX Settlement Operating Rules and Procedures and ASX Clear Operating Rules and Procedures, which take into account feedback received.

Public Consultation on Tranche 2

On 21 February 2020, ASX released a consultation paper on the second of three tranches of operating rule amendments required to facilitate the implementation of the new system that will replace CHESS. These relate to corporate actions, mFund and RTGS payment aspects for 'Day 1' implementation of CHESS replacement system functionality. RTGS supports payments for corporate actions involving entitlement acceptances as well as payments for bilateral demand settlement instructions (addressed in tranche 1 rule amendments).

The consultation paper invited feedback from users and other stakeholder on the operation of the draft tranche 2 rule amendments including any unintended consequences.

Written submissions closed on 29 May 2020. ASX received a total of 11 submissions from a range of stakeholders including participants, registries, payment providers, an industry body and an approved listing market operator.

On 24 September 2020 ASX released its response to consultation feedback received on the tranche 2 draft rule amendments. The response to consultation feedback contains:

a summary of the feedback received in stakeholder submissions;
ASX's response to such feedback; and
the draft rule changes made to the ASX Settlement Operating Rules and Procedures, which take into account feedback received.

In April 2018, ASX released a consultation paper, CHESS Replacement: New scope and implementation plan to:

Understand whether any important new business requirements have not been captured
Invite feedback on the proposed testing and release management strategy
Invite feedback on the proposed migration and implementation approach
Understand if any particular information was required by stakeholders to assist in transition planning

The consultation period closed on 22 June 2019 and ASX released its response on 4 September 2018 - a summary of the responses received and detailed changes ASX has made to the scope and implementation plan as a result of industry feedback.

A total of 41 written submissions were received including 21 submissions provided on a non-confidential basis.

In September 2016, ASX released a consultation paper, Replacement of CHESS for Equity Post-Trade Services: Business requirements to:

Provide the market with an update on ASX's evaluation of DLT;
Set out ASX's preliminary thinking on the business requirements for a system to replace CHESS; and
To seek initial views from users on their business requirements.

The deadline for submission of responses was 28 October 2016 and ASX released its response on March 2017. ASX asked for additional information from stakeholders via the Supplementary Business Requirements Questionnaire on 22 December 2016.

ASX received 36 written submissions to the original consultation paper, including 23 that were provided on a confidential basis. This provided valuable input to ASX to run a series of industry working groups on new business requirements from May to November 2017.