The Australian Securities Exchange (ASX) is still open to using blockchain for its core replacement project. 

Despite previously discontinuing work on a distributed ledger (blockchain) solution, CIO Tim Whiteley says the technology remains an active option for replacing the clearing house electronic subregister system (CHESS), which underpins all trades and settlements on the exchange.

Last year, the ASX halted work on the distributed ledger technology (DLT)-based CHESS replacement due to significant challenges in technology, governance, and delivery. 

Recent reports suggested that the redesigned replacement would not involve DLT and would instead utilise conventional technology. 

However, during an investor day, Whiteley clarified that no final decision had been made, contrary to previous headlines.

“We remain on track to announce a solution design in the last quarter of this calendar year, and we continue to explore all options for the solution design”, he said. 

The ASX is considering four areas: modifying the previous DLT-based solution to address identified issues, building a new solution with conventional technologies and architectures, exploring product-based options by reviewing software products used by international exchanges, and upgrading the existing CHESS system while enhancing its functionality.

Additionally, regulatory requirements necessitate the ASX to maintain the current CHESS system until 2032, regardless of the replacement's nature. 

Consequently, the ASX is actively working on various upgrades to ensure compliance with these obligations within the next few years.