The Australian Securities Exchange (ASX) has released a public consultation paper proposing that the CHESS replacement settlement and subregister services be implemented by 2029. This marks the second consultation by ASX this year, aimed at gathering industry feedback on the project’s scope and implementation.
The ASX has also published a summary of the feedback received on an April whitepaper discussing a potential transition from a T+2 to a T+1 settlement cycle. This feedback is integrated into the current consultation paper, reflecting ongoing industry engagement.
Clive Triance, ASX Group Executive for Securities and Payments, emphasised the importance of transparent and collaborative consultation for the success of the CHESS replacement project and the T+1 transition. The proposed implementation involves two main releases: the first, scheduled for the first half of 2026, will deliver clearing services. The second release, planned for 2029, will include settlement, subregister services, and additional clearing enhancements.
Feedback
The consultation paper incorporates industry input from various working groups, addressing improvements such as continuous netting, account segregation, and corporate action elections. Responses to the T+1 whitepaper indicated a preference to avoid simultaneous implementation of T+1 and Release 2 of the CHESS replacement. ASX has presented several options for the timing of the T+1 transition, outlining the associated risks and benefits.
Stakeholders are encouraged to provide feedback on the proposals by 13 September. ASX aims to review submissions and issue a consultation response paper in the fourth quarter of 2024.
