Key Highlights
- TCS and ASX successfully go live with CHESS Release 1 for clearing and settlement.
- Deployment uses TCS BaNCS and Quartz solutions on a scalable cloud platform.
- System can process over 20 million trades per day with high resilience.
- CHESS Release 1 delivers new clearing component for financial market infrastructure.
- ASX targets CHESS Release 2 go-live by 2029 as part of phased modernization.
Tata Consultancy Services (TCS) has announced the successful go-live of Release 1 of the Australian Securities Exchange (ASX) Clearing House Electronic Subregister System (CHESS), marking a major milestone in the modernization of Australia’s financial market infrastructure.
The deployment forms part of ASX’s broader CHESS replacement program aimed at upgrading post-trade clearing and settlement systems through a phased transformation approach. Release 1 introduces a new clearing component designed to enhance operational efficiency, scalability, and resilience.
CHESS is a critical system that facilitates the clearing and settlement of trades in financial products. It enables the transfer of legal ownership of securities and supports delivery-versus-payment settlement by simultaneously transferring securities and funds between buyers and sellers.
As part of the project, TCS implemented its TCS BaNCS for Market Infrastructure along with Quartz Gateway solutions. These technologies provide a cloud-based, high-performance clearing platform capable of handling multiple asset classes. The system supports real-time trade novation and netting while complying with global messaging standards such as ISO 15022, ISO 20022, and FIX.
The platform has been benchmarked to process more than 20 million trades per day, positioning ASX to handle future growth with improved system reliability and scalability. The solution also enables connectivity with multiple Australian exchanges and supports seamless industry integration.
ASX stated that the successful rollout of CHESS Release 1 represents a significant step in modernizing Australia’s financial market infrastructure. The exchange highlighted that collaboration with TCS has resulted in the deployment of a secure, resilient, and scalable solution.
TCS noted that the implementation establishes a strong foundation for future enhancements in the post-trade ecosystem. The company also confirmed that work has already commenced on Release 2 of the CHESS replacement program, which is targeted for completion by 2029.
The CHESS modernization initiative follows a staged implementation strategy developed in consultation with industry participants to minimize risks associated with large-scale financial infrastructure upgrades.