‘More disappointment’: ASX’s key technology project delayed again

The Australian Securities Exchange has once again delayed the launch of its long-awaited technology overhaul, scrapping the deadline for the fourth time and casting doubt over the future of the milestone project.

The ASX was set to launch the CHESS replacement program in April 2023, but the bourse on Wednesday said this was “no longer viable”. The program has been promoted as using blockchain technology to improve core trading services.

The company has not provided a new timeframe for when the project will go live, in a development the group executive Tim Hogben said was necessary to allow for further consultation.

“I acknowledge the disappointment that we were unable to provide further guidance on key project milestone dates to help with your planning and budgeting for CHESS replacement,” he said. “I can now confirm that April 2023 for go-live is no longer viable.

“ASX’s priority remains to deliver CHESS replacement in a manner that balances safety and efficiency. Ongoing engagement with the industry is a vital ingredient. The existing CHESS system remains robust and continues to perform well in the meantime.”

The ASX has been investing in the technology project since 2017 and the go-live date has been pushed back due to a range of factors including COVID-19, complaints from the industry about lack of consultation and technological setbacks.

ASX deputy chief Peter Hiom was originally responsible for the project but resigned last year after 23 years with the company. Hogben replaced Hiom in overseeing the project, who said at the time only a major geopolitical crisis, such as a war between China, Australia and the US, would further delay the project rollout.

ASX chief executive Dominic Stevens announced he planned to retire this year in February, and a search is underway for his replacement. Ord Minnett chief executive Karl Morris said he would not be surprised if the new chief executive took a different approach to the project.

“I wouldn’t be surprised if there’s some significant different decisions when a new CEO takes over,” Morris said. “To make sure the path they’ve taken is the correct one.”