AUSTRALIA: ASX Announces Implementation Plan for Release 2 of the CHESS Project

Thursday November 28 2024

On 26^th November 2024, the Australian Securities Exchange (ASX) announced its implementation plan for the settlement and sub-register services (Release 2) of the CHESS system.

Key points

• CHESS Release 2 implementation targeted for 2029 with estimated project costs of between $270 million and $320 million
• ASX continues to work towards 2026 for delivery of Release 1 with estimated project costs currently expected to be at the upper end of the previously communicated range of between $105 million to $125 million
• Existing capital expenditure guidance remains unchanged and includes allowances for both releases of the CHESS system, noting that expenditure for Release 2 will extend beyond the guidance period
• ASX plans to use the full $70 million of the CHESS Replacement Partnership Program, subject to other considerations, with the remaining $37 million to be recognised in FY26 and FY28 as significant items

Following consultation, ASX is targeting the implementation of Release 2 in 2029, which is expected to allow time for industry preparation and readiness activities. ASX also continues to consult and work with the industry to consider whether to adopt a shorter T+1 settlement cycle. If there is to be a move to a shorter settlement cycle, ASX has received initial industry feedback that it should follow the implementation of the CHESS project.

Click on the above link for further information