Stakeholder engagement

ASX recognises the importance of meaningful engagement with customers and other stakeholders in managing its cash equities clearing and settlement infrastructure and services for the Australian market.

Stakeholder engagement

ASX utilises a range of mechanisms and forums to obtain user input to ensure the cash equities clearing and settlement services it provides meets the needs of the diverse range of customers and other stakeholders in the Australian market. These consultative mechanisms include bilateral customer engagement, hosting industry working groups, undertaking broad based public consultation processes and structured regular engagement through the ASX Business Committee and Cash Equities Clearing and Settlement Advisory Group.

In recognition of the significance of the ASX project to replace the system that provides cash equities clearing and settlement services (CHESS), ASX designed a series of activities to engage with relevant stakeholders through the CHESS Replacement Technical Committee.

For all Stakeholder Engagement content from the previous iteration of the CHESS Replacement project refer here.

Further information about CHESS replacement

Engagement forums

The key forums for engaging with stakeholders are the Business Committee; Technical Committee; Cash Equities Clearing and Settlement Advisory Group; Business Design Working Group; ISO 20022 Technical Design Working Group. The calendar of events will be updated over time and is subject to change. ASX will send out invitations to relevant attendees prior to each event.

Advisory Group

Business Committee

Technical Committee

Business Design Working Group

Implementation & Transition Working Group

ISO 20022 Design Working Group

Public consultation

Consultation paper

On 14 March 2024, ASX released a consultation paper titled Consultation paper on staged implementation approach and implementation of Release 1 (Clearing Services).

This consultation paper outlines the proposed staged implementation of the new CHESS replacement solution across two main releases, and seeks industry feedback on the proposed staged implementation strategy for CHESS replacement. It also seeks feedback on the proposed design, scope and schedule for Release 1 and the testing approach for Release 1, including system development and testing, technical accreditation, documentation and operational readiness. The proposed first release will replace CHESS’ clearing component and introduce Financial Information eXchange (FIX) messaging for trade registration for all Approved Market Operators (AMOs). This release is designed to minimise disruption for Clearing and Settlement (CS) Participants by maintaining the existing CHESS message interface and business processes, and offering a familiar operational environment.

This is the first of two consultation papers seeking feedback on the staged implementation approach to CHESS replacement. Feedback obtained through this consultation will inform ASX’s proposals for Release 2 for consultation in Q3 2024, which will seek stakeholder feedback on the proposed Release 2, which will enhance settlement and subregister functionality and messaging interfaces for participants, registries and payment providers.

ASX welcomes industry views on the proposals outlined in this consultation paper. In addition to seeking feedback, this consultation paper is designed to equip impacted stakeholders with the necessary information to begin initial planning and resource allocation for the implementation of CHESS replacement. Written submissions are requested by 24 April 2024.

ASX response

On 28 June 2024, ASX released a response paper summarising feedback received to the consultation paper and ASX’s response to the feedback.

ASX received 22 written responses from stakeholders including Approved Market Operators, Participants, Software Providers, Industry Bodies and other interested parties.

ASX thanks the stakeholders that provided written feedback. Given the overall support for a staged implementation, and for the proposed design, scope and schedule for Release 1 of the CHESS Replacement Project, ASX does not propose to make material changes to the Release 1 design and scope proposals as set out in the consultation paper.

Some adjustments have been made to the proposed industry testing timeframes for Release 1, which have resulted in corresponding changes to the proposed overall Release 1 timeline. The suite of Release 1 industry testing documentation has also been updated.

The Release 1 go-live date will be set with industry stakeholders as part of finalising the Release 1 Cutover and Migration Approach documentation, targeted for publication in Q2 2025.

ASX will continue to engage with stakeholder working groups that report to the CHESS Replacement Technical Committee on aspects of testing, cutover and go-live which may need to be further refined over time.