AUS
NZ
UK
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Highlights
- - The ASX CHESS system faces a significant outage, delaying settlement processes.
- - Demand and registry transaction processing have been paused due to technical issues.
- - Updates on the resolution are expected as efforts to identify the root cause continue.
The Australian Securities Exchange (ASX) experienced a major disruption as its Clearing House Electronic Subregister System (CHESS) encountered an outage, causing delays in batch settlements. This technical issue has put demand and registry transaction processing on hold, impacting market participants reliant on the system for seamless trade and settlement operations.
In an update shared on the ASX system status page, it was noted that trades from Approved Market Operators (AMOs) are still being received, and MT164 messages are being disseminated to clearing participants. However, the processing of demand and registry transactions remains paused. The delay in the CHESS batch settlement process has halted Delivery versus Payment (DvP) settlements.
ASX stated that efforts are underway to identify the root cause of the issue. According to their notice, updates will be shared as soon as further developments occur. A spokesperson from the ASX emphasized the organization’s commitment to resolving the problem promptly and acknowledged the impact on market participants, payment providers, and registries.
The outage adds to the ongoing challenges faced by the CHESS system, which has been under scrutiny due to delays in its replacement program. The replacement initiative, initially aimed at modernizing the CHESS infrastructure through blockchain technology, faced setbacks after failed experiments and scheduling issues. In August, the corporate regulator initiated legal proceedings against the ASX, alleging misleading statements regarding the timelines of the replacement project.
This latest disruption has once again highlighted the critical role of the CHESS system in ensuring smooth operations within the Australian financial market. While new trades are being processed normally, the delay in settlements has raised concerns among stakeholders who depend on the system's reliability.
Updates regarding the resolution of the outage are expected as the ASX works to minimize the disruption. The company has assured stakeholders that its technical team is making every effort to address the issue by the end of the day.
Market participants are encouraged to monitor the ASX system status page for further announcements. As this situation evolves, the focus remains on restoring normalcy to Australia’s clearing and settlement processes.
