A stock quote board is decorated with the Australian Securities Exchange (ASX) logo in downtown Sydney, Australia, February 13, 2018. Photo taken February 13, 2018. REUTERS/David Gray/File Photo Acquire Licensing Rights
Nov 20 (Reuters) – Australian exchange operator ASX Ltd (ASX.AX) said on Monday it would move forward with a product-based solution from TATA Consultancy Services (TCS.NS) to design and replace its trading, clearing and settlement system.
ASX said it would implement the new platform in two main releases, with the clearing service delivered in a first release, and the settlement and subregistry services in a second release.
The estimated cost for the first release of the Clearing House Electronic Subregister System (CHESS) project is between A$105 million ($68.33 million) and A$125 million, to be incurred over several years, ASX said.
ASX added that the CHESS replacement project will move to the next phase of design and implementation, with further stakeholder consultation commencing in the first quarter of 2024.
The exchange operator has come under scrutiny in recent times, with Australia passing laws to encourage competition in post-trade settlement and clearing for financial markets since ASX halted a costly rebuild of its CHESS platform last year .
($1 = 1.5366 Australian dollars)
Reporting by Himanshi Akhand in Bengaluru Editing by Chris Reese
Our Standards: Thomson Reuters Trust Principles.