ASX issues update on CHESS Replacement Partnership Program
ASX today released details of proposed eligibility criteria for certain stakeholders to receive an incentive payment as part of the CHESS Replacement Partnership Program. In a message to stakeholders, ASX invited feedback on the proposed criteria ahead of making the first development incentive payment under the $70 million program.
As previously announced at its 2023 half-year results, the Partnership Program is designed to recognise the important work that will be undertaken on a go-forward basis as ASX, together with industry, work together toward the successful progress and completion of the CHESS replacement project. The Partnership Program consists of two separate financial support components:
- a Participant Rebate Pool of $15 million to be paid to clearing and settlement participants in August 2023
- a Development Incentive Pool of up to $55 million for stakeholders that meet the eligibility criteria, with an initial payment expected to be made in May 2023, subject to feedback.
To be eligible to participate in the Development Incentive Pool, ASX proposes that a Partnership Program participant must be developing a technology application to connect to and interact with the CHESS replacement solution, and which will be subject to technical accreditation by ASX.
ASX may also consider the inclusion of additional stakeholders in the Development Incentive Pool who do not otherwise meet the above criteria. This additional category seeks to recognise stakeholders who:
- will need to undertake major internal development to prepare their systems and operations to integrate with vendor systems in order to meet key project milestones and support a successful go-live of the CHESS replacement solution; and
- transmit and receive more than 5 million CHESS messages annually.
On 16 February 2023, as part of the 1H23 results release, ASX announced the CHESS Replacement Partnership Program. The purpose of the Partnership Program is to establish a framework to provide a financial contribution toward stakeholder participation with respect to the successful progress and completion of the CHESS replacement project. This includes any technological and other development activities necessary to successfully interface and interoperate with the CHESS replacement solution that ASX is developing.