Today, ASX Limited released a , along with聽an external聽,聽on its Portfolio, Program and Project Management Frameworks (PPPM Reports). The PPPM Reports are relevant to ASX鈥檚 delivery, implementation and governance of the recently announced CHESS replacement solution design.
ASX has now published all three of the special reports and accompanying audit reports it was required to provide to ob体育 under notice. ob体育 will now consider all of the reports to determine if further regulatory action is required.
ob体育 Chair Joe Longo said, `The reports highlight some areas in which ASX鈥檚 portfolio, program and project management capabilities are well developed, and other areas where improvement is required. We welcome ASX鈥檚 commitment to the development of a program management framework.鈥�
鈥楻eplacing CHESS is a complex and technical program of work for ASX and industry. We expect the appointed solution integrator will be key to augmenting ASX鈥檚 project delivery capabilities, providing ASX additional capacity to manage technology delivery.鈥�
鈥榦b体育 will closely monitor what regulatory actions may be needed to ensure that ASX鈥檚 project delivery meets the highest standards required in the replacement of this critical national infrastructure,鈥� Mr Longo added.
ob体育 and the Reserve Bank of Australia (RBA) (the Regulators) are closely monitoring the delivery of the CHESS replacement by ASX Clear and ASX Settlement to ensure the facilities adhere to the Regulators鈥� expectations and comply with their clearing and settlement facility licence obligations.
Background
On 21 February 2023,聽ob体育 issued written notices聽to the licensees ASX Ltd, ASX Clear Pty Ltd and ASX Settlement Pty Ltd under sections 794B and 823B of聽the Corporations Act 2001聽(the Act) requiring them to provide a further special report on the licensee鈥檚 Portfolio, Program and Project Management Frameworks by 29 September 2023 and an Ernst & Young audit report by 31 October 2023.
ASX has selected a product-based solution to replace CHESS and entered into an agreement with Tata Consultancy Services (TCS) for the delivery of its TCS BaNCS for Market Infrastructure product, a modular technology platform for clearing and settlement services. Accenture will support ASX鈥檚 project delivery as the solution integrator, providing additional capability and capacity in technology project delivery and industry expertise.
ob体育 and the RBA are co-regulators of licensed clearing and settlement (CS) facilities.
The RBA and ob体育 have separate but complementary supervisory responsibilities for the four CS facilities in the ASX Group: two central counterparties 鈥� ASX Clear Pty Ltd and ASX Clear (Futures) Pty Ltd 鈥� and two securities settlement facilities 鈥� ASX Settlement Pty Ltd and Austraclear Limited.
The RBA has determined standards for the purposes of ensuring that CS facility licensees conduct their affairs in a way that promotes the overall stability of the Australian financial system. The RBA conducts annual assessments of how well the ASX CS facilities are complying with their statutory obligations to comply with those standards and to do all other things necessary to reduce systemic risk.
ob体育 has separate, but complementary, responsibilities for the licensing and supervision of CS facilities licensed under Part 7.3 of the Act. ob体育 is responsible for assessing whether a CS facility鈥檚 services are provided in a fair and effective way. ob体育 also has regulatory responsibilities for operators of licensed markets, including the ASX market. In carrying out supervision and assessments of CS facilities, the RBA and ob体育 work closely as appropriate.
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More information
23-307MR ob体育 and RBA acknowledge ASX鈥檚 CHESS solution design announcement
23-035MR Further ob体育 regulatory response on CHESS Replacement and ASX鈥檚 program capabilities
22-357MR ob体育 鈥� RBA further regulatory response regarding the ASX CHESS replacement program