TCS and ASX Launch CHESS Release 1: A Milestone in Australia’s Post-Trade Market Overhaul
TCS and ASX Launch CHESS Release 1: A New Era for Australia’s Financial Infrastructure
In a significant leap towards modernizing Australia’s post-trade market infrastructure, Tata Consultancy Services (TCS) and the Australian Securities Exchange (ASX) have successfully launched Release 1 of the CHESS program. This pivotal upgrade marks a new chapter in the clearing and settlement of trades for eligible financial products, setting the stage for a more efficient and secure trading environment.
The newly implemented clearing component of CHESS not only facilitates the transfer of legal title to securities but also ensures seamless delivery-versus-payment settlements, effectively managing the movement of securities and cash between buyers and sellers. This transformation is crucial for maintaining the integrity and efficiency of Australia’s equities market operations.
TCS has deployed its advanced BaNCS for Market Infrastructure and Quartz Gateway products as part of this initiative. Designed to support central counterparty clearing across various asset classes, the system boasts real-time trade novation and netting capabilities, along with connectivity to multiple Australian exchanges. With the ability to process over 20 million trades daily, the cloud-hosted system adheres to ISO 15022, ISO 20022, and FIX messaging standards, ensuring a robust and scalable solution for the market.
ASX is rolling out the CHESS replacement in two phases to mitigate risks associated with such a critical market system. With Release 1 now operational, the focus shifts to the second stage, which is expected to go live in 2029. Tim Whiteley, Chief Information Officer at ASX, emphasized the importance of this milestone, stating, “Release 1 of the CHESS Project marks a significant milestone in the modernization of Australia’s critical market infrastructure supporting post-trade clearing and settlement services.”
The collaboration between TCS and ASX has been instrumental in achieving this milestone. R Vivekanand, president of BFSI Products and Platforms at TCS, expressed pride in the partnership, highlighting that the successful launch of CHESS Release 1 lays a strong foundation for future growth in Australian financial markets. “Together, we have smoothly implemented a world-class platform that sets a strong foundation to drive the future growth and development of Australian financial markets,” he said.
The CHESS replacement project is a long-term transformation of a system that has been vital for clearing, settlement, and securities registration in Australia. As the financial sector watches closely, the successful implementation of Release 1 signals a promising future for the country’s trading landscape, with the second release on the horizon.
With TCS’s extensive experience in market infrastructure and ASX’s commitment to modernization, the Australian financial market is poised for a new era of efficiency, security, and innovation.