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Highlights
- ASX completes CHESS system resourcing review
- Identifies sufficient support for regular operations
- Plans submitted to strengthen post-incident response
The Australian Securities Exchange (ASX:ASX) has finalised an in-depth resourcing and capability review for its CHESS (Clearing House Electronic Subregister System) platform. This follows recommendations made by the Reserve Bank of Australia (RBA) and the Australian Securities and Investments Commission (ASIC) in response to operational risk concerns earlier in the year.
The review evaluated the ASX’s internal resources and technical capabilities for maintaining CHESS, the platform that facilitates the clearing and settlement of equities trades in Australia. According to the findings, the exchange currently holds adequate staffing and expertise to manage the day-to-day functions of the platform, alongside scheduled upgrade and development tasks.
However, it also noted a rising demand on ASX's operational and technology teams, especially in the aftermath of the December 2024 settlement disruption. The additional workload stems from post-incident recovery efforts and compliance with regulatory directives. While the technical teams were found capable of managing routine operations, their capacity could be stretched thin during prolonged or complex incidents.
To address these challenges, ASX has outlined a detailed resourcing enhancement plan, now formally submitted to the RBA and ASIC. This strategy is a direct response to the RBA’s recommendation issued after the CHESS batch settlement disruption that occurred on 20 December. The plan focuses on improving staffing strategies and enhancing support structures to ensure the resilience of CHESS, particularly during critical operational periods.
This initiative is part of a broader effort to ensure the stability of market infrastructure, especially as demand on trading systems continues to rise amid dynamic market conditions. Investors keeping an eye on market performance, particularly in key indices like the ASX200, will be watching closely how these infrastructure improvements impact trading continuity and confidence.
Furthermore, developments in platforms like CHESS are particularly relevant for those tracking ASX dividend stocks, as smooth settlement operations play a vital role in ensuring timely and accurate dividend payments and reporting.
The ASX's renewed commitment to reinforcing its systems illustrates the importance of robust infrastructure in underpinning market integrity. With transparency and operational resilience in focus, the market operator aims to mitigate future disruptions and align its systems with evolving regulatory expectations.
