ASX Indefinitely Delays Launch of DLT Settlement System

by Arnab Shome
  • The test environment of the platform will be available to all users by October 2020.
ASX Indefinitely Delays Launch of DLT Settlement System
Finance Magnates

The Australian Securities Exchange (ASX) has indefinitely postponed the launch of the Blockchain -based alternative of its equities clearing and settlement system.

Originally set for a launch by the end of 2020, the exchange earlier delayed it till April next year. Now, however, there is no specified timeline for the launch.

Announced on Wednesday, the move this time was taken due to the ongoing turmoil caused by the COVID-19 outbreak.

The decentralized clearing system will replace the legacy CHESS system of the exchange.

“In light of recent events, ASX is replanning the implementation of the CHESS replacement system,” Peter Hiom, deputy chief at ASX, said. “We are conscious of the importance of providing a new schedule, and the need to get the valuable input of CHESS users. Right now, however, in this environment of heightened Volatility and activity levels, the industry needs to focus on day-to-day operations.”

Coronavirus crippling the industries

The exchange will initiate talks to replan the launch of its blockchain platform in June and will assess the implication of COVID-19.

In partnership with blockchain firm Digital Asset, the ASX is working on the blockchain-based alternative for three years now.

“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,” Hiom added.

“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.”

Notably, in mid-2019, the ASX has already launched the testnet of its ambitious decentralized system to replace its decades-old CHESS system. Now available to only a handful of players, the exchange is aiming to open the industry test environment to all users by October.

The Australian Securities Exchange (ASX) has indefinitely postponed the launch of the Blockchain -based alternative of its equities clearing and settlement system.

Originally set for a launch by the end of 2020, the exchange earlier delayed it till April next year. Now, however, there is no specified timeline for the launch.

Announced on Wednesday, the move this time was taken due to the ongoing turmoil caused by the COVID-19 outbreak.

The decentralized clearing system will replace the legacy CHESS system of the exchange.

“In light of recent events, ASX is replanning the implementation of the CHESS replacement system,” Peter Hiom, deputy chief at ASX, said. “We are conscious of the importance of providing a new schedule, and the need to get the valuable input of CHESS users. Right now, however, in this environment of heightened Volatility and activity levels, the industry needs to focus on day-to-day operations.”

Coronavirus crippling the industries

The exchange will initiate talks to replan the launch of its blockchain platform in June and will assess the implication of COVID-19.

In partnership with blockchain firm Digital Asset, the ASX is working on the blockchain-based alternative for three years now.

“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,” Hiom added.

“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.”

Notably, in mid-2019, the ASX has already launched the testnet of its ambitious decentralized system to replace its decades-old CHESS system. Now available to only a handful of players, the exchange is aiming to open the industry test environment to all users by October.

About the Author: Arnab Shome
Arnab Shome
  • 6306 Articles
  • 80 Followers
About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6306 Articles
  • 80 Followers

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