ASX Launches CHESS Release 1 Clearing Services Ahead of Market Open
ASX has successfully deployed Release 1 of its CHESS system, introducing a modern clearing platform designed to handle increased trading volumes and improve resilience. The rollout marks a key step in ASX's technology modernisation strategy, with Release 2 on track for 2029.
- CHESS Release 1 now operational with all Approved Market Operators connected
- Platform designed for scalability, security, and higher trading volumes
- Project costs remain within $125 million estimate
- Release 2 development underway, targeting settlement and sub-register services by 2029
- Contingency plans in place during initial live market operations
CHESS Release 1 Goes Live Amid Market Volatility
ASX (ASX:ASX) has flipped the switch on Release 1 of its long-anticipated CHESS modernisation project, bringing a new clearing platform online just in time for market open. This upgrade arrives against a backdrop of heightened market volatility, underscoring the need for infrastructure that can absorb surges in trading activity without faltering.
All Approved Market Operators successfully connected to the new clearing component ahead of trading, signalling a smooth technical transition so far. The platform promises enhanced resilience and scalability, designed to handle significantly higher volumes than the legacy system. ASX’s CEO Helen Lofthouse described the launch as a "key step" in executing the group's broader technology modernisation strategy, highlighting the platform’s sustainability and security features.
Monitoring Early Operations and Managing Risks
While the initial connections have been positive, ASX’s acting Group Executive for Securities & Payments Andrew Jones emphasised that the real test lies in today’s trading, batch settlement, and end-of-day processing. The ASX teams remain vigilant, ready to activate contingency plans if technical issues arise during this critical early phase.
The CHESS Project’s two-release approach, a recalibration following industry feedback and a reset of the Accelerate program, aims to reduce delivery risk and ease the market’s adjustment to the new system. This measured rollout reflects ASX’s commitment to stakeholder engagement and its response to regulatory scrutiny, including the recent ASIC inquiry that led to a major transformation plan and a $150 million capital charge transformation plan and capital charge.
Project Costs and Next Steps Toward Full Modernisation
ASX confirmed that Release 1 costs remain within the previously estimated $125 million budget, a notable achievement given the scale and complexity of the upgrade. Meanwhile, work on Release 2, which will introduce settlement and sub-register services, is progressing steadily. Industry testing environments opened in late March to support software providers’ readiness, with a target delivery year of 2029.
This phased approach allows ASX to build a robust technology stack capable of evolving alongside market demands. However, the extended timeline for full implementation means market participants will be navigating a hybrid environment for several years, balancing legacy processes with new infrastructure.
Bottom Line?
ASX’s CHESS Release 1 launch marks a critical technology milestone, but the platform’s resilience will be tested as live trading unfolds and the industry prepares for the eventual Release 2 transition.
Questions in the middle?
- How will ASX manage potential technical issues during the initial live trading and settlement cycles?
- What feedback will industry participants provide on the new clearing platform’s performance and usability?
- How might the extended timeline for Release 2 impact market participants’ operational planning and risk management?
