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  • Writer's pictureT Skevington and M Bacina

The ASX distributed ledger technology based CHESS replacement roadshow

Updated: May 2

The ASX has been conducting a national roadshow on the major ASX Listing Rule changes due to come into effect on 1 December 2019, and updating the market on progress with CHESS replacement including timing, features and benefits both on "day one" and in the future.

The Roadshow follows the ASX's release of its Final Response to the 8 November 2018 consultation paper "Simplifying, clarifying and enhancing the integrity and efficiency of the ASX listing rules". Given that the reforms include some substantive rule amendments as well as new, updated and expanded guidance, the roadshow is an excellent opportunity for stakeholders to engage with the ASX on the changes and consider how they are affected before the changes commence from 1 December 2019.

Following increasing media and industry scrutiny of the CHESS Replacement project, ASX continues to push back on the system being described as a blockchain (it's not - it's a distributed ledger system which is a bit decentralised) and is updating the market on how the project is progressing, clarifying that:

  1. operating a node will be optional;

  2. market participants will be forced need to provide additional or new information, but can do so if they wish; and

  3. the intent is to open up competition by allowing third parties to build on top of the platform using the much more open (and literally open sourced) DAML programming language, a vast improvement over the existing COBOL framework (COBOL was invented in 1959).

The ASX is also taking the opportunity to expand on the benefits of DAML over COBOL, ISO 20022 integration, and of a market which can be brought into near real-time sync.

With events already having been held in Brisbane, Melbourne, Perth and Sydney, the ASX will be completing its roadshow on the following dates:

  1. Adelaide - Wednesday 6 November 2019, 9am -11am - Register for Adelaide

  2. Sydney - Thursday 7 November 2019, 9am -11am - Register for Sydney


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