The ASX’s long awaited blockchain-based replacement for CHESS has been delayed again, after trading volumes surge during the pandemic. 

The Australian Securities Exchange (ASX) has announced it is delaying the introduction of its blockchain-based replacement for its Clearing House Electronic Subregister System (CHESS) system again, because it wants to triple its planned capacity and make other improvements before it goes live. 

The COVID-19 pandemic triggered a surge in trade volumes from March, causing the ASX to revise the requirements for its new blockchain-based clearance system – which has already been in development for four years.

Originally slated to launch in April 2021, in March 2020 the schedule was pushed back by 12 months, with testing expected to start in December and a full launch in April 2022. Now it appears there will be further delays, with a new implementation schedule set to be confirmed later this month.  

ASX is working with several firms on the project, including VMware and Digital Asset Holding (DA), and is utilising open-source contract programming language DAML. 

Though some have expressed concerns that the new system may suppress competition, by further enhancing the ASX’s monopoly position, and even threaten the survival of brokers, share registries, and other stakeholders, the ASX argues it will actually present new opportunities and greatly improve efficiency for everyone. 

AYO.NEWS says:

Though the delays are sure to frustrate many, and encourage opponents who have vested interests maintaining the status quo, the very fact that there has been such a surge clearly illustrates the need for a state of the art blockchain-based system. 

Staying with Digital Asset’s DAML, last month it was confirmed as the exclusive contract language for China’s Blockchain Services Network (BSN). 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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