ASX partners with TATA Consultancy Services on product based solution to replace CHESS
ASX has completed its reassessment of the solution design to replace CHESS and will proceed with a product based solution to be delivered by global technology provider TATA Consultancy Services (TCS).
The CHESS replacement project will now move to the next phase of detailed design and implementation, with further stakeholder consultation to commence in the first quarter of 2024.
ASX today entered into an agreement with TCS for the delivery of its TCS BaNCS for Market Infrastructure product, which offers a modular technology platform for clearing and settlement services.
ASX proposes to implement the new platform in two main releases, with the clearing service to be delivered in a first release, and the settlement and sub-register services to follow in a second release. This staged approach is expected to reduce overall delivery risk and should help manage impacts on industry stakeholders, as compared to a single cut-over approach.
Stakeholder input has been key to the decision announced today, including input from the CHESS Replacement Technical Committee, the ASX Business Committee and the Cash Equities Clearing and Settlement Advisory Group. The next formal consultation with stakeholders will commence in the first quarter of 2024 and will cover the high level project plan and an indicative timeline for the releases, including the design, scope and timing for each of the releases.
The indicative timeframe for implementation of the first release (the clearing service) is 2026, and the scenarios being considered for the second release (the settlement and sub-register services) estimate implementation in 2028 or 2029. The delivery timeframes are subject to a number of factors including stakeholder consultation and detailed planning.
Given the scale and complexity of the CHESS replacement project, ASX has also today entered into an agreement with Accenture to support ASX’s project delivery in the role of solution integrator. Accenture will provide additional capability and capacity in technology project delivery and industry expertise.
The estimated cost for the first release (clearing) of the project is between $105 and $125 million, to be incurred over multiple years, with the FY24 capital expenditure component captured in ASX’s existing FY24 capital expenditure guidance.
The scope, timing and cost of the second release (settlement and sub-register) is expected to be determined in late 2024 following stakeholder consultation.