After an Earlier flop, the Australian Stock Exchange chose TCS to rebuild the software
As per the report, the Australian stock exchange operator has contracted with Tata Consultancy Services to redesign its clearing and settlement software after abandoning a much-criticized blockchain-based effort. This decision will need less modification. This move represents a significant approach; ASX will implement the new software gradually instead of a ‘big bang’ changeover that its users deemed risky. It’s expected that the overhaul will be completed in 2029, around 13 years after it began.
The Australian Exchange said on Monday that TCS’s software is used by exchanges globally, including in Canada and Finland, for tasks that are expected to be performed for ASX’s Clearing Housing Electronic Subregister System.
On a call with an analyst and media, ASX’s Chief Information Officer said, “They serve a lot of customers with their well-established products and technology”. Further, he added, “The amount of customization is minimal”.
After an external review, it was found that the code needed to be updated, and the blockchain-based project failed. The failure caused market participants to lose faith in ASX, which also resulted in an A$176.3 million writedown. It also prompted an investigation into the exchange’s project disclosure to be opened by the Australian Securities and Investment Commission (ASIC).
ASIC Chair Joe Longo stated, Although ASX has taken significant steps, there is a long way to be done to deliver a CHESS substitute. ASX shares were increased by 1% in afternoon trading.
As per ASX, in the first stage of the new project, the clearing software will cost between A$105 million and A$125 million, which will be completed around 2026.
