Australian stock exchange abandons blockchain projects, leaving $170 million hole
Blockchain-based upgrade that has been underway for almost five years has potentially cost Australia's leading exchange more than $170 million .
New
The Australian Securities Exchange's (ASX) long-awaited plans to use blockchain to bring its clearing and settlement system into the 21st century have just been called off.
In a November 17 statement, ASX announced that it had suspended all ongoing activities of its "CHESS replacement project" following an independent review by technology consultancy Accenture, which identified "significant challenges with the design of the solution and its ability to meet ASX's requirements", stating:
"Ongoing activities on the project have been suspended while ASX reviews the solution design."
Over the past five years, ASX has been working on a Distributed Ledger Technology (DLT) solution that would replace its 25-year-old Clearing House Electronic Sub-Register System (CHESS) used to record participations and manage settlements of transactions.
The system was originally supposed to launch in 2020, but the project has been marred by multiple delays over the years, with ASX saying it needs more time for testing, that it There was uncertainty around COVID-19, that it needed more time for development, capacity reviews, and even more testing before it went live.
Among the findings of its 47-page report, Accenture said that enterprise workflows "were not suitable for a distributed environment", that the DLT-based system was too complex and that the lead time execution was uncertain whether the application software was over 60 years old. % done.
Blockchain-based upgrade that has been underway for almost five years has potentially cost Australia's leading exchange more than $170 million .
New
The Australian Securities Exchange's (ASX) long-awaited plans to use blockchain to bring its clearing and settlement system into the 21st century have just been called off.
In a November 17 statement, ASX announced that it had suspended all ongoing activities of its "CHESS replacement project" following an independent review by technology consultancy Accenture, which identified "significant challenges with the design of the solution and its ability to meet ASX's requirements", stating:
"Ongoing activities on the project have been suspended while ASX reviews the solution design."
Over the past five years, ASX has been working on a Distributed Ledger Technology (DLT) solution that would replace its 25-year-old Clearing House Electronic Sub-Register System (CHESS) used to record participations and manage settlements of transactions.
The system was originally supposed to launch in 2020, but the project has been marred by multiple delays over the years, with ASX saying it needs more time for testing, that it There was uncertainty around COVID-19, that it needed more time for development, capacity reviews, and even more testing before it went live.
Among the findings of its 47-page report, Accenture said that enterprise workflows "were not suitable for a distributed environment", that the DLT-based system was too complex and that the lead time execution was uncertain whether the application software was over 60 years old. % done.
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