The Australian Securities Exchange (ASX) has come under pressure to further postpone the launch of a blockchain replacement for its decades-old settlement and clearing system.
One of the main share registry companies in Australia, Computershare, (FT) on June 25 it was seeking a two-year delay to the implementation of the ASX’s new blockchain-based system because the new project “lacked clarity.”
The Clearing House Electronic Subregister System, or CHESS, is the existing infrastructure responsible for clearing and settlements of trades and transactions on the ASX’s network. The stock exchange is planning to overhaul the current system with distributed ledger technology to enable same-day settlements.
Concerns raised by Computershare relate to a claimed lack of clear information on the technical and operational aspects of CHESS, the fee structure for new services and how regulation would be implemented and governed on the new system.