ASX deployed the third CHESS Release 2 software drop to Industry Test Environment 2 on 6 October, allowing software providers to reconnect and test the next settlement and sub-register functions. It follows the April production launch of the separate clearing release and moves the longer replacement programme into deeper integration work.[2][1]
The two releases have different production dates
CHESS replacement architecture
| Release | Core scope | Current status |
|---|---|---|
| Release 1 | Clearing services | Went live on 20 April 2026; first full T+2 cycle completed successfully.Source 3Source 2 |
| Release 2 | Settlement and subregister services | In industry testing; current programme expectation is 2029.Source 3Source 1 |
Testing builds toward the settlement cutover
Industry Test Environment 2 milestones
| Date | Milestone | What it enables |
|---|---|---|
| 30 March 2026 | ITE2 opened | Software providers could begin Release 2 testing.Source 2 |
| 6 July 2026 | Drop 2 available | Additional functions and updated technical material entered the environment.Source 2 |
| 6 October 2026 | Drop 3 deployed | Providers could reconnect and continue build, test and readiness work with new release notes.Source 1Source 2 |
| 4 May 2027 | Industry-wide cyber resilience exercise scheduled | A separate resilience test is planned across participating organisations.Source 1 |
| 2029 expectation | Release 2 production objective | Settlement and subregister replacement remains ahead, subject to programme delivery and oversight.Source 3 |
Release 2 testing is distributed across ASX, software providers, participants, registries and their users. A successful test must do more than transmit the normal message: it has to reconcile the resulting balances and records, handle rejections and corrections, and show what the participant or customer sees when an exception occurs.[1][2]
The 6 October drop supplies test functionality for that work. Current production settlement and sub-register services remain on the existing CHESS system while Release 2 progresses toward its expected 2029 implementation. The scheduled 4 May 2027 industry cyber exercise adds a separate resilience milestone to the functional testing programme.[1][2]
Delivery sits under closer governance scrutiny
The programme’s governance history gives those milestones added weight. ASX was ordered to pay an A$20.5 million penalty for misleading statements made in 2022 about the replacement project’s progress. ASIC’s expert inquiry separately examined governance, risk and delivery, while ASIC and the Reserve Bank of Australia continue their oversight of the market infrastructure.[4][5][3]
The distinction between the releases is therefore useful for judging progress. April’s clearing cutover provides evidence of a completed production migration; October’s settlement drop provides software that the industry can test. The remaining delivery case rests on the test results, participant readiness and cutover controls needed for the settlement and register system.[1][2][3]
Sources & further reading
- CHESS Project: latest updates ASX · Accessed 16 Oct 2026
- CHESS project stakeholder communications ASX · Accessed 16 Oct 2026
- Market Integrity Update: April 2026 Australian Securities and Investments Commission · 30 Apr 2026 · Accessed 16 Oct 2026
- ASX ordered to pay A$20.5 million penalty over CHESS replacement disclosure Australian Securities and Investments Commission · 1 Jul 2026 · Accessed 16 Oct 2026
- ASIC publishes ASX Inquiry Panel final report Australian Securities and Investments Commission · 2 Apr 2026 · Accessed 16 Oct 2026