Clearing and Settlement of Cash Equities in Australia

Stakeholder Engagement

ASX recognises the importance of meaningful engagement with customers and other stakeholders in managing its cash equities clearing and settlement infrastructure and services for the Australian market. 

ASX utilises a range of mechanisms and forums to obtain user input to ensure the cash equities clearing and settlement services it provides meets the needs of the diverse range of customers and other stakeholders in the Australian market.  These consultative mechanisms include bilateral customer engagement, hosting industry roundtables, undertaking broad‑based public consultation processes and structured regular engagement through the ASX Business Committee.

In recognition of the significance of the ASX project to replace the system that provides cash equities clearing and settlement services (CHESS), ASX has also established a Technical Committee and a number of topic specific Working Groups to provide ASX with user input on the business requirements for the replacement of CHESS.

The Technical Committee is focused on CHESS messaging and the adoption of the ISO 20022 global messaging standard.  The Technical Committee comprises 29 industry representatives, including clearing participants, settlement participants, unaffiliated market operators, software vendors, share registries, APCA, SFAA, and SWIFT.  The key objectives, activities and governance of the Technical Committee, together with the meeting agendas and papers can be found here.

Throughout 2017, ASX will convene six Working Groups to obtain input on the business requirements for the replacement of CHESS from customers and other relevant stakeholders.   The Working Groups will consider the following topics:

  1. Account structures and participant models
  2. Corporate actions
  3. Transfers, conversion and data migrations
  4. Settlement enhancements
  5. Data storage, delivery and reporting
  6. Non‑functional requirements

The Working Groups will be focused on identifying and defining opportunities for improvements to post‑trade processes and services, which could potentially be addressed through the replacement of CHESS.  The input from the Working Groups on the business requirements will also include industry prioritisation of specific business requirements for the scope of ‘day 1’ implementation of the system that replaces CHESS.