The Australian Securities Exchange (ASX) has once again delayed its transition to the blockchain, due in part to uncertainty around the touch on of the global COVID-19 pandemic.

In an announcement published on March 25, ASX said it was replanning its blockchain implementation timetable in light of the unfolding crisis, too as because of issues that were under consideration prior to the outbreak.

In June, the exchange volition therefore seek user input to establish a new go-live appointment — which until at present had been set for April 2022.

Pandemic-driven volatility takes its cost

As reported, the ASX has been developing blockchain infrastructure that will replace its electric current system for processing equity transactions — known equally the Clearing House Electronic Subregister System (CHESS) — since Dec 2022.

Having already delayed implementation before, the pandemic and its economic shockwaves at present plain place further strains on ASX's development and readiness activities:

"In recent days, ASX has received further feedback about the power of users to focus on the CHESS replacement project during this period of heightened volatility and activity levels. With many firms in the industry, including ASX, operating with a large proportion of staff working from home, the ability to participate in coordinated readiness activities later this twelvemonth is unclear."

By postponing the finalization of a new implementation timetable until June, ASX says it hopes to be in a position to better assess the implications of COVID-19 for its activities.

Notably, the commutation indicates that even prior to the pandemic, its consultation with marketplace users over the past three years on the functionality and timing of the CHESS replacement system has led to diverse feedback: some users have been advocating no delay, while others would like the project extended to requite anybody more time to set.

While CHESS replacement is beingness postponed, ASX says it remains committed to a target launch date of July 2022 for its opening of an Manufacture Exam Environment (ITE) for developers.

Concluding the announcement, the exchange's deputy CEO Peter Hiom has said:

"ASX remains fully committed to CHESS replacement. We continue to progress the project, including arrangement development and testing, supporting back office software developers [....] the investments we are making in the new system and in distributed ledger technology are for the long-term do good of the fiscal services industry and the Australian economy."

ASX'southward blockchain advancement

Every bit reported, ASX released the first code for its replacement app development tool based on blockchain applied science in leap 2022 — a Client Development Environment platform, adult in partnership with The states-based Digital Asset Holdings.

In October, the Australian subsidiary of market operator Chi-X called on the Australian Contest and Consumer Committee to investigate the possible furnishings of blockchain technology on trading activities.

At the time, Chi-X Commonwealth of australia said it was concerned that the new blockchain CHESS replacement arrangement would give ASX an unfair advantage and should be regulated, arguing that:

"There'southward a substantial moat effectually the ASX clearing and settlement business… And the CHESS replacement project is perchance making information technology bigger."