ASIC and the RBA have provided the ASX with a joint letter of regulatory expectations after ASX released its independent report regarding the CHESS replacement program. 

The regulators expect that: 

  • the current CHESS is supported and maintained to ensure its stability, resilience, and longevity so that it can continue to service the market reliably; 
  • the ASX improves its program delivery capabilities; and
  • the replacement program is brought back on track after the solution design has been completed, so ASX can fulfil its commitment to delivering safe and reliable clearing and settlement infrastructure. 

The regulator and reserve bank strongly recommended theat ASX carefully evaluate and select the most appropriate and timely way forward to replace CHESS. 

ASIC and the RBA will continue to closely monitor ASX’s compliance with its clearing and settlement facility licence obligations and take action if required.