ASX CHESS Replacement

The ASX has embarked on a project to replace its settlement system CHESS with distributed ledger technology (DLT). This will require all ASX participants that interface with CHESS to upgrade their systems to integrate using the new ISO 20022 SWIFT Interface.

It is anticipated that ASX participants that use SecuritEase will transition from CHESS to the new ISO 20022 messaging interface in a largely seamless and low impact manner. While there will be some functional changes required due to the structural changes that the ASX is implementing as part of this change, SecuritEase will work with its clients to ensure that this has minimal and managed impact to their existing operations.

SecuritEase will support both CHESS and CSP via configuration for a seamless cutover. SecuritEase is actively working with the ASX towards the replacement of CHESS, and has staff attending ASX working groups, technology sessions and has frequent one on one discussions with ASX representatives to ensure that the SecuritEase build progress is smooth and efficient.

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ASX CHESS Replacement – Update 10

1 December 2022

With the ASX Announcement on the 17^th November 2022 that the CHESS Replacement project is going put on hold pending further review, SecuritEase is also ceasing activity on the project. SecuritEase is disappointed with this development having invested many years of effort, mostly completed the required changes to the SecuritEase system and being about to start a messaging accreditation test run with the ASX which they had been urging system providers to perform.

SecuritEase will monitor the situation with the hope that the ASX will move to a solution that largely utilizes the ISO 20022 messaging interface that was built to their requirements but can support the wider industry performance and functional requirements.

ASX CHESS Replacement – Update 9

15 December 2020

The ASX published a response to consultation and revised timeline in October 2020. It was confirmed there will be a 12-month extension to the go live date, bringing it to April 2023, and with increased project scope.

Following the extreme increase in trading activity earlier this year, the ASX has now revised the original scope which has resulted in more capacity & scalability requirements to the architecture design of the CHESS replacement system, as well as redesigning the current NBO process to significantly improve the scalability of overnight processing.

New features that were originally planned to come in a later version of the project (after the initial go-live) are now included in day one scope. There are now 11 software drops within the project timeline. The 11th is the addition of new features.

On 2nd December, the ASX released the 9th of the 11 software drops of the CHESS Replacement application into our Customer Development Environment (CDE). The SecuritEase project team are well underway with Development and Test and expect to close release 9 in late January 2021.

The SecuritEase team will ramp up again with the Development of new features in the subsequent CDE drops, and then preparing for entry into ITE1 to carry out extensive integration tests as well as Technical Accreditation before handing builds to our customer base.

ASX CHESS Replacement – Update 8

16 October 2020

The ASX is yet to publish their revised timeline that they first announced in their March 2020 re-planning publication. The ASX had said the new timeline would be published in September, but they now say it will be out late October/early November. In the meantime we (SecuritEase) continue to progress our development, and our project resources remain focussed.

On 14th September, the ASX released the 8th of 10 software drops of the CHESS replacement application into our Customer Development Environment (CDE). This included new features for holding administration locking and unlocking, new corporate action work flows, the payment provider authorisation for RTGS payments, the workflow for bilateral demand settlement instructions as well as new issuer (registry) end of day reports.

As we await the new timeline to be announced, we can only anticipate that the 9th software drop will arrive in December 2020 alongside the delivery of the Integrated Test Environment (ITE1).

We have completed releases 1 through 7, with releases 8 and 9 in-flight.

We are now working on the strategy and planning for integration testing to start late January in ITE1 and Technical Accreditation which is anticipated to start mid 2020.

ASX CHESS Replacement – Update 7

14 May 2020

On the 25th March 2020 the ASX announced it is re-planning the CHESS replacement implementation timetable due to the uncertainty created by the unfolding COVID-19 pandemic, response to user feedback on timing, requested functionality changes, and the need for the ASX to complete aspects of its own readiness.

The ASX will seek user input in June 2020 on a new schedule that will move the go-live date beyond April 2021.

Whilst there is delay in the timeline, the SecuritEase project team remains fully focused and we continue to be an engaged and proactive vendor in the ongoing market-wide efforts to develop to the CHESS replacement system.

Release 6 was delivered by the ASX slightly later than anticipated, however SecuritEase has managed to stay on track. The ASX has pushed out almost all functions that were originally coming in Release 7 to a new Release 8. The timeline for Release 8 is unknown, however the technical documentation has been made available to keep us moving forward.

Release 7 (CDE7) is due late May where we intend to complete tests of Batch Settlement (Settlement Failure Levy Overview), Account Management (Locking and Unlocking, Cancellation and HIN Matching).

It was of course inevitable that the timeline was delayed due to Covid-19, and whilst the current uncertainty on the new timeline is frustrating for all, we continue to work with each of our participants to stay aligned.

ASX CHESS Replacement – Update 6

4th March 2020

The SecuritEase project team have successfully achieved connectivity via the secure AMO FIX gateway and are now undertaking application level testing.

We are nearing completion of our testing of Release 5 which included Change of Controlling Participant, SRN Enquiry and Issuer Sponsored Transfer. When that is complete we will start testing against Release 6 CDE. We are also currently doing analysis work on Release 7.

The ASX has delivered final technical documentation – with the exception of Demand Reporting, and we are working to finalise our build plan for currently specified Day 1 features catering for the expected delivery of outstanding documents.

Our focus over these next 5 months is on closing out Release 6 & 7 ready for Participants to enter into Industry Wide Testing (IWT) starting in July.

Release 6 & 7 we consider to be the largest of releases with the delivery of mFund, Corporate Actions, Demand Reporting and the last pieces of the Account Management puzzle.

We continue to work with all participants in assisting them towards IWT and Operational Readiness and anticipate the coming months will be a very busy period.

ASX CHESS Replacement – Update 5

30th November 2019

The SecuritEase project team continue to stay on track and in alignment with the ASX timeline for CHESS Replacement.

Release 4 CDE was delivered in October and AMO FIX connectivity has been developed and internally tested. The team are now in the process of establishing connectivity to a 2nd CDE to test this AMO configuration.

Unilateral and Bilateral Settlement Instruction including Part 2 of 3 – Batch Settlement has Development complete and internal testing is underway.

We are also working with participants to understand any migration tasks that might have to be undertaken as part of the pre-migration clean up identified in the 3rd Implementation and Transition working group session held on the 29th November.

SecuritEase continue to be involved in Technical Committee meetings and working groups whilst assisting our customers to achieve their deliverables towards Industry Wide Testing and go-live readiness.

ASX CHESS Replacement – Update 4

30th September 2019

Release 3 CDE was delivered in August where SecuritEase completed Netting and the most part of Account Holder Maintenance. In achieving this, we were able to successfully process end to end a HIN update whilst interfacing with the ASX Customer Development Environment.

The 2nd Implementation and Transition working group was held on the 25th October which provided valuable insight into key activities & milestones for cut over and transition. We have since been working with our individual customers to overlay our timelines to achieve the outlined go-live deliverables.

ASX CHESS Replacement – Update 3

31st July 2019

Build and testing of deliverables for both CDE1 and CDE2 is complete.

Netting changes in CDE3 have completed build and internal testing ready for CDE3 availability.

Account/holder structure changes have gone through analysis and are in development for testing during the CDE3 test window.

CDE4 technical document has been released by the ASX and is under review.

SecuritEase has been testing against the node and is working with the ASX towards getting access to use the Java interface in a manner which is efficient for SecuritEase and will allow the node and AMQP methods of connectivity and use to be largely identical where common interactions exist. SecuritEase is also continuing to monitor the capabilities of the node for customer benefits.

ASX CHESS Replacement – Update 2

20th May 2019

The new Bilateral Demand Settlement method has been added and tested end to end against our test server.

SecuritEase continues to integrate confirmed CHESS replacement development into the SecuritEase product. Design and build of messages available in CDE2 is underway in anticipation of being available in test in June.

SecuritEase is progressing investigation of the distributed ledger node and Ledger API access to the ASX settlement system will be available to those seeking to connect this way. We anticipate testing against a node in the near future.

ASX CHESS Replacement – Update 1

31st March 2019