Cutover and Migration Strategy Document

Table of Contents



Section 01 - Introduction to the Cutover and Migration Strategy

In accordance with the 11 May 2022 CHESS Replacement Project Update, the following documentation and timelines will be revised in future documentation releases as ASX continues to work with our technology partner and stakeholders on the timing of project milestones including; industry testing, operational readiness, accreditation, market dress rehearsals and implementation.

Please refer to the 20 June 2022 CHESS Replacement Project Update for the latest information on project status.

(info) Table of Contents

 Document Information

Context of this Document

The ASX Cutover and Migration Strategy must be read in the context of the ASX CHESS Replacement Technical Documentation (as applicable).

In the interests of readability and comprehension, where a procedure applies only in the context of securities in a listed company, the specific term security has been used instead of the more generic term financial product.

Change History

Version Date Comment
Current Version (v. 3) Jul 06, 2022 06:50 ASX1
v. 2 Jul 04, 2022 02:21 ASX1
v. 1 Dec 16, 2021 08:53 ASX2

1.1 Source

The ASX Cutover and Migration Strategy is issued and maintained by ASX Limited (ASX).

1.2 Purpose of Cutover and Migration Strategy

The purpose of the Cutover and Migration Strategy is to provide software providers and CHESS users with the scope and approach for the migration of CHESS to the CHESS replacement system including the associated Market Dress Rehearsals (MDRs).

The Cutover and Migration Strategy provides:

  • an overview and timeline of cutover and migration;

  • the migration scope including CHESS user considerations and expectations;

  • an overview of the cutover weekend including key activities for CHESS users;

  • the approach for MDRs including key considerations;

  • an introduction to post MDR day one testing; and

  • the release plan for other supporting industry testing documentation.

The summary of cutover and migration focus group feedback may be found in Appendix A.

1.3 Key Definitions

Terms

Definitions

Data Migration

Sequence of activities, automated or manual, enabling migration of selected data from source system(s) to target system(s), often times to enable new / target system(s) to be the new system(s) of record and continue to support functionalities, either fully or partly, that were provided by the source system(s) until cutover.

Production Refresh

A copy of CHESS production is taken and the copy is made available to the ASX Migration team. All CHESS related migration and reconciliations use this copy as the source of truth.

Extract

The process of retrieving data from source systems to facilitate transformation and generation of load files. The CHESS Replacement Powered Data Platform leverages JDBC drivers to gain access to the prod copy and manage data flow in to Migration Database.

Transform

Data conversion from current form to enable load in to target system, including modification or derivation of data value and/or format of data.

Load

The process of moving extracted / transformed data into the target system.

Reconciliation

The act of validating the expected number of records have been migrated to target system and verifying that the defined datasets match expected results. There are two phases of reconciliation; pre-load reconciliation and post-load reconciliation.

Business Verification

After reconciliation, the process of verifying that migration has resulted in correct data population in the target system.

Data Validation

The process of identification of data quality issues against the target CHESS replacement system requirements. This is performed prior to the load of data in the CHESS replacement system.

Mock Migration

Execution of data migration and reconciliation of the Cutover to prove the end to end data migration and reconciliation process

Testing on Migrated Data

An internal test phase specifically designed to test a set of prioritized functionalities in the CHESS Replacement system with migrated data.

Dataset

A logical grouping of data.

Load File

A file in a desired format (i.e. CSVs) generated by Extract/Transform program as an output and used as an input by target system’s load program to load.

Masking

Obfuscation of production data in a way enabling usage of production data for test purposes without compromising on data security and effectively preventing any reverse engineering to identify a person or entity and/or expose sensitive information.

Inflight Transactions

Workflows originated in current CHESS and open during the cutover weekend needing to complete in the new system post migration.

Housekeeping

Housekeeping is the activity performed by ASX in current CHESS to cancel or reject specific requests received from a CHESS user and where the counterparty to that request has not responded within accordance of the defined timeframe prior to current CHESS End of Day commencing.

Cutover

Cutover refers to the single cutover go-live weekend for CHESS replacement where the CHESS business will be migrated to the CHESS replacement system including all integrations and external customers.

Critical Success Factor (CSF)

Measurable verification scenarios that are performed as part of the cutover weekend that are fundamental in determining a Go or No Go decision. See section 5.2.

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This document provides general information only. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from anyone acting or refraining to act in reliance on this information.

© 2022 ASX Limited ABN 98 008 624 691



Section 02 - Cutover and Migration Overview and Timeline

In accordance with the 11 May 2022 CHESS Replacement Project Update, the following documentation and timelines will be revised in future documentation releases as ASX continues to work with our technology partner and stakeholders on the timing of project milestones including; industry testing, operational readiness, accreditation, market dress rehearsals and implementation.

Please refer to the 20 June 2022 CHESS Replacement Project Update for the latest information on project status.

(info) Table of Contents

 Document Information

Context of this Document

The ASX Cutover and Migration Strategy must be read in the context of the ASX CHESS Replacement Technical Documentation (as applicable).

In the interests of readability and comprehension, where a procedure applies only in the context of securities in a listed company, the specific term security has been used instead of the more generic term financial product.

Change History

Version Date Comment
Current Version (v. 5) Jul 28, 2022 04:27 ASX1
v. 4 Jul 06, 2022 06:26 ASX1
v. 3 Jul 04, 2022 02:22 ASX1
v. 2 Mar 31, 2022 02:53 ASX3
v. 1 Dec 16, 2021 08:53 ASX2

2.1 Background

CHESS is the core system that performs clearing, settlement, asset registration, and other post trade services which are critical to the orderly functioning of the market. Additional information regarding the project may be found in Section 2.1 of the industry test strategy.

As part of CHESS replacement Cutover and Migration activities, ASX will be migrating data from CHESS to the CHESS replacement system. This document provides further information on the Cutover and Migration strategy as well as the activities CHESS users would need to take into consideration both prior to and during the cutover weekend.

2.2 Overview of Cutover and Migration Cutover Phases

Cutover dress rehearsals will ensure all required activities successfully cutover to the target state within the required timeframe. ASX will conduct three phases of dress rehearsals prior to the cutover go-live in order to minimise the risks. These will be:

  1. ASX Technical Dress Rehearsals (TDR) - ASX internal cutover dress rehearsals that focus on ensuring technical related ASX cutover tasks are proven to be stable;

  2. ASX Dress Rehearsals (ADR) - ASX internal cutover dress rehearsals that focus on ensuring the full scope of ASX cutover activity can be executed within the cutover window successfully. A business verification test will be performed with all relevant internal ASX stakeholders. Participant activity is not in scope. ; and

  3. Market Dress Rehearsals (MDR) - Rehearsal of the full scope of the go-live cutover including tracking participant activity against the full Go / No Go criteria.

The MDR is the only rehearsal phase that requires market participation. In addition to this, ASX continues to conduct regular validation on the full volume of production data and identify exceptions in line with the migration requirements. ASX has been working closely with Controlling Participants on exceptions identified for HIN data together with remediation steps. Both ASX and Controlling Participants are working hand in hand to remediate the known exceptions by the end of February 2022. However, as expected in any transformation such as CHESS replacement, ASX will continue to monitor, communicate and remediate exceptions where required until the cutover weekend. For additional information, refer to section 5.

2.3 Cutover and Migration Independent Review

In 2019, an industry tender process was undertaken to select a partner to support ASX with internal migration activities.  KPMG was selected based on its specialist data migration expertise and its track record in capital markets / financial services industry migrations. KPMG data migration team is accountable to deliver a data ‘migration platform’ which will perform the data extraction, transformation and reconciliation activities to migrate data from current CHESS to the CHESS replacement system. Furthermore, KPMG is also responsible to implement data validation and data profiling rules to achieve the required level of data quality for migration.

Additionally, as part of the CHESS Replacement assurance program, ASX has engaged an external party to perform an independent review of the CHESS replacement migration strategy and cutover approach.

2.4 Cutover and Migration Timeline

A series of migration related phases have been scheduled through 2022 and into 2023, as outlined in the timeline below, prior to go-live in April 2023.

Supplementary materials for Cutover and Migration will be delivered in accordance to Section 6.4 of the Industry Test Strategy.

Additional documents have been added to the documentation release plan,

See Section 6.4 of the Industry Test Strategy for more details.

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This document provides general information only. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from anyone acting or refraining to act in reliance on this information.

© 2022 ASX Limited ABN 98 008 624 691



Section 03 - Data Migration

In accordance with the 11 May 2022 CHESS Replacement Project Update, the following documentation and timelines will be revised in future documentation releases as ASX continues to work with our technology partner and stakeholders on the timing of project milestones including; industry testing, operational readiness, accreditation, market dress rehearsals and implementation.

Please refer to the 20 June 2022 CHESS Replacement Project Update for the latest information on project status.

(info) Table of Contents

 Document Information

Context of this Document

The ASX Cutover and Migration Strategy must be read in the context of the ASX CHESS Replacement Technical Documentation (as applicable).

In the interests of readability and comprehension, where a procedure applies only in the context of securities in a listed company, the specific term security has been used instead of the more generic term financial product.

Change History

Version Date Comment
Current Version (v. 3) Jul 04, 2022 02:22 ASX1
v. 2 Dec 16, 2021 11:53 ASX2
v. 1 Dec 16, 2021 08:53 ASX2

3.1 Data Migration Scope

The scope of data migration for the CHESS Replacement project can be grouped into two categories:

  • datasets that will be migrated by ASX without impact to CHESS users (such as CHESS UICs, payment facilities, issuers, securities, relationships, active inflight corporate actions and holdings); and

  • datasets that will be migrated by ASX and will require CHESS user actions, which are:

    • accounts and holder details

    • inflight transactions

The table below outlines the different areas and corresponding approach for migration that will:

  1. include all participant-related data (including entities, actors, roles, payment facilities, accounts, holdings and sub-positions, scheduled settlement obligations, etc.);

  2. include all ASX reference data (including calendar, active inflight corporate actions, issuers, securities and share registry relationships, EOD prices etc.);

  3. maintain market integrity and continuity of service; and

  4. enable selected historical data reporting in the CHESS Replacement system.

Area

Require CHESS user action

Account and Holder details

Yes - Data will be migrated by ASX and will require CHESS user actions. Please refer to migration considerations for CHESS users below.

Settlement Instructions

Yes - Data will be migrated by ASX and will require CHESS users actions. Please refer to migration considerations for CHESS users below.

CHESS user UICs

No - Data will be migrated by ASX without impact to CHESS users. No new UICs will be created or removed over the cutover weekend.

Payment Facilities

No - Data will be migrated by ASX without impact to CHESS users.

Issuers, Securities and Share Registry relationships

No - Data will be migrated by ASX without impact to CHESS users.

Active corporate actions events

No - Data will be migrated by ASX without impact to CHESS users.

There is no requirement from ASX for a corporate action black-out period prior to/over cutover weekend.

Holdings and subpositions (inclusive of cum-entitlements)

No - Data will be migrated by ASX without impact to CHESS users.

Historical Data

No - Historical data will be migrated by ASX without impact to CHESS users.

3.2 ASX Migration Activity

ASX will migrate all active data from current CHESS to the CHESS Replacement system, including UICs, accounts (HINs), holdings (including sub-positions) and open scheduled settlement instructions.

3.2.1 Accounts

Key characteristics of account migration include:

  • accounts retain the same HIN number;

  • a holder ID (internal system identifier) will be assigned to each holder within a HIN (required for future updates); and

  • Current CHESS 180 character registration details will be converted to ISO 20022 format.

3.2.2 Open scheduled settlement instructions

Key characteristics for open scheduled settlement instructions include:

  • all scheduled settlement instructions will be migrated including net broker obligations, market trades, client side unilateral and bilateral scheduled instructions;

  • for some instruction types in current CHESS, a new instruction type will be applied in the CHESS Replacement system (for example, Net Broker Obligations will be migrated as Novated Rescheduled Instructions); and

  • existing current CHESS transaction ID will be updated noting existing current CHESS transaction ID will form part of the new obligation ID.

3.3 Migration Considerations for CHESS Users

3.3.1 During Cutover weekend

Details on migration considerations during the cutover weekend are provided in section 4.2.

3.3.2 Prior to Cutover weekend

ASX is working with sponsoring participants to identify any exceptions with HIN registration details. This includes providing guidance on remediation directly with effected sponsoring participants to remove dormant accounts, correct invalid country codes and remove references to invalid terms in account designation. In addition, ASX has provided the Registration Details Tool (RDT) to assist with the conversion of current account registration details to the new account registration details. Additional information on the Registration Details Tool may be found on Registration Details Tool.

3.4 Inflight Transactions

Details on inflight transactions are provided in Cutover and Migration - Inflight Transactions.

3.5 Corporate Actions

Details on corporate actions for migration are provided in Cutover and Migration - Corporate Actions.

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This document provides general information only. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from anyone acting or refraining to act in reliance on this information.

© 2022 ASX Limited ABN 98 008 624 691



Section 04 - Cutover Weekend

In accordance with the 11 May 2022 CHESS Replacement Project Update, the following documentation and timelines will be revised in future documentation releases as ASX continues to work with our technology partner and stakeholders on the timing of project milestones including; industry testing, operational readiness, accreditation, market dress rehearsals and implementation.

Please refer to the 20 June 2022 CHESS Replacement Project Update for the latest information on project status.

 Document Information

Context of this Document

The ASX Cutover and Migration Strategy must be read in the context of the ASX CHESS Replacement Technical Documentation (as applicable).

In the interests of readability and comprehension, where a procedure applies only in the context of securities in a listed company, the specific term security has been used instead of the more generic term financial product.

Change History

Version Date Comment
Current Version (v. 3) Jul 06, 2022 06:46 ASX1
v. 2 Jul 04, 2022 02:22 ASX1
v. 1 Dec 16, 2021 12:21 ASX2

4.1 High Level Cutover Timeline

The cutover weekend will commence once the Friday End of Day (EOD) has completed in ASX source systems. Over the weekend, the following processes will be done:

  • Saturday - reserved for ASX to migrate to the CHESS replacement system, while CHESS users will complete all relevant change tasks. Note that ASX will track that each CHESS user have downloaded Friday messages by 10am on the Saturday. It is from this point that CHESS access will be disconnected.

  • Sunday - prove connectivity including simple verification checks. The final go / no go, indicatively scheduled for Sunday PM, will seek readiness confirmation from each CHESS user. For additional information on the proposed verification and input into the final go / no go decision, refer to section 4.2 and section 4.4.

4.2 CHESS User Activity during Cutover

The table below provides CHESS users an indicative overview of cutover activities that will be rehearsed as part of Market Dress Rehearsals (MDRs) and executed during Go Live. Indicative times have been provided to aid CHESS users with their planning.

The dates provided are subject to change and will be finalised as part of the MDR overview due to be published July 2022.

4.2.1 Clearing and Settlement Participant cutover activity

Cutover weekend phase

Cutover Activity

Prior to Friday EOD

(Prior to 7pm)

  • Normal business functions

  • The following transactions will not be migrated and will instead be housekept as part of CHESS EOD to reduce the complexity of cutover:

    • unmatched demand dual entry and settlement instructions;

    • incomplete Issuer (Registry) transfer and conversion requests; and

    • offeror initiated takeover acceptances.

  • Consideration is required for change of Controlling Participant (no housekeeping) where the relinquishing party must accept/reject (or requesting party to cancel)

  • ASX may reject collateral withdrawals on the Friday (currently these are actioned on Monday morning). Where securities are required for settlement on Monday participants will need to withdraw this collateral prior to the Friday EOD.

  • No messages to be sent post 7pm once CHESS EOD processing commences

Friday EOD to Saturday PM

(Fri 7pm – Sat 10pm)

  • Download CHESS messages from EOD processing (available from 2am on Saturday)

  • Complete internal EOD processing

  • Logoff from the current CHESS system (by 10am on Saturday)

  • Enable CHESS replacement system’s capability, including the:

    • replication of Holder IDs to existing accounts;

    • optional reflection of new format of account registration details in host systems (using ASX registration details tool or similar mechanism); and

    • association of Obligation IDs with Transaction IDs, with mapping of Transaction ID and Obligation ID provided by ASX.

Post ASX Migration

(Sunday 7am)

  • Review the customer migration reports disseminated by ASX for Clearing and Settlement Participants, listed in section 4.5, and confirm no major mismatches preventing business as usual processing from Monday

CHESS Replacement Connectivity and Verification

(Sunday 7am)

  • Log on to establish connection to the CHESS replacement system 

  • Receive an Event Notification (sett_170) sent from CHESS Operations (Generic Broadcast Notification) 

  • Generate a report request e.g. “ACNT” - Account Notification

4.2.2 Share Registry cutover activity

Cutover weekend phase

Cutover Activity

Prior to Friday EOD

(Prior to 7pm)

  • Collect CHESS messages (in accordance with ASX Settlement Operating rules)

  • Remediate any balance exceptions

  • Normal business functions

  • Accept/reject all pending Issuer to CHESS transfers / conversions 

  • Accept/reject all pending SRN enquiries and SRN enquiry balances

  • Accept/reject all pending holding advices (i.e., Bank Account Details)

  • Accept/reject all takeover removal requests (Offeror)

  • Reject/cancel any takeover acceptances (Offeror)

  • No messages to be sent post 7pm once CHESS EOD processing commences

Friday EOD to Saturday PM

(Fri 7pm – Sat 10pm)

  • Review and process housekept messages pertaining to incomplete workflows:

    • Cancelled offeror initiated takeover acceptance requests; 

    • Cancelled transfer and conversion requests

  • Receive and process all report request messages (for example HMV, CMV, TSB and CEB)

  • Receive and process 'Applied Code Change' if any code changes are to be affected for the next business day (Monday post migration)

  • Withhold cancellation report requests relating to the previous Security Code (the subject of a code change) until the go/no-go decision is made; if a go decision is determined no action required & if no-go decision is made, submit cancellation report request to the current CHESS. 

  • Receive and process all 'archived sub-register messages' (if applicable)

  • Complete internal EOD processing

  • Logoff from the current CHESS system (by 10am)

  • Enable the CHESS replacement system capability

Post ASX Migration

(Sunday 7am)

  • Review the customer migration reports disseminated by ASX, listed in section 4.5, and confirm no major mismatches preventing business as usual processing from Monday

CHESS Replacement Connectivity and Verification

(Sunday 7am)

  • Log on to establish connection to CHESS Replacement 

  • Receive Event Notification (sett_170) sent from CHESS Operations (Generic Broadcast Notification) 

  • Generate a report request (for example Account Notification (ACNT))

4.2.3 PISP and Unit Registry cutover activity

A four business day blackout period for mFund application and redemption requests immediately prior to cutover will be implemented.

Cutover weekend phase

Cutover Activity

Prior to Friday EOD

(Prior to 7pm)

  • Collect CHESS messages (in accordance with ASX Settlement Operating rules)

  • Remediate balance exceptions, if any

  • Normal business functions

    • During black-out period do not accept any new application or redemption requests

  • Accept/Reject all pending issuer to CHESS conversions 

  • Accept/Reject all pending SRN enquiries and SRN balance enquiries 

  • Accept/Reject all pending holding advices (i.e. bank account details)

  • No messages to be sent post 7pm once CHESS EOD processing commences

Friday EOD to Saturday PM

(Fri 7pm – Sat 10pm)

  • Receive and process all report request messages (for example HMV and TSB)

  • Complete internal EOD processing

  • Logoff from the current CHESS system (by 10am on Saturday)

  • Enable the capability of the CHESS replacement system, including optional conversion of registration details into ISO 20022 format and be able to receive new account or amend account requests in ISO 20022 format

Post ASX Migration

(Sunday 7am)

  • Review the customer migration reports generated and disseminated by ASX, listed in section 4.5 below, and confirm no major mismatches preventing business as usual processing from Monday

CHESS Replacement Connectivity and Verification

(Sunday 7am)

  • Log on to establish connection to the CHESS replacement system

  • Receive an Event Notification (sett_170) sent from CHESS Operations (Generic Broadcast Notification) 

  • Generate a report request (for example Account Notification (ACNT))

4.2.4 Payment Provider cutover activity

Cutover weekend phase

Cutover Activity

Prior to Friday EOD

(Prior to 7pm)

  • Normal business functions

Friday EOD to Saturday PM

(Fri 7pm – Sat 10pm)

  • Download CHESS messages from EOD processing

  • Complete internal EOD processing

  • Logoff from the current CHESS system (by 10am on Saturday)

  • Enable the capability of the CHESS replacement system

Post ASX Migration

(Sunday 7am)

  • NA

CHESS Replacement Connectivity and Verification

(Sunday 7am)

  • Log on to establish connection to the CHESS replacement system

  • Receive Event Notification (sett_170) sent from CHESS Operations (Generic Broadcast Notification)

4.2.5 AMO cutover activity

Cutover weekend phase

Cutover Activity

Prior to Friday EOD

(Prior to 7pm)

  • Normal business functions, including

    • Complete all trade registrations and any trade cancellations, price registration notification message submission by normal business times

    • (For current TAS users) CHESS to send all acceptance messages by close of business

  • No messages to be sent post 7pm once CHESS EOD processing commences

Friday EOD to Saturday PM

(Fri 7pm – Sat 10pm)

  • Download CHESS messages from EOD processing

  • Complete internal EOD processing

  • Logoff from current CHESS system (by 10am)

  • Enable CHESS Replacement capability

Post ASX Migration

(Sunday 7am)

  • Review the customer migration reports generated and disseminated by ASX, listed in section 4.5 below, and confirm no major mismatches preventing business as usual processing from Monday

CHESS Replacement Connectivity and Verification

(Sunday 7am)

  • Log on to establish connection to the CHESS replacement system

4.3 Exceptions Handling during Cutover

In the event of exceptions identified over the cutover weekend, ASX will remediate exceptions on the cutover weekend to enable commencement of migration activities. The diagram below provides an overview of the exception handling process.

The above diagram illustrates ASX:

  • May identify exceptions during both pre-load and post-load reconciliations (R1 & R2) that will require ASX to invoke the exception handling process

  • May decide to trigger a ‘delta migration’ (re-migration of failed records upon remediation)

  • Will perform a final reconciliation (R3) if a delta migration is performed

  • Will report all reportable exceptions identified and remediated over the cutover weekend to relevant CHESS users via Customer Migration Reports

All decisions on exception handling on cutover weekend will be managed by ASX.

4.3.1 Customer communication

All reportable exceptions identified and remediated over the cutover weekend will be reported to relevant CHESS users via Customer Migration Reports. Please refer to section 4.5 below on Customer Migration Reports for further details.

4.4 Go / No-Go checkpoints

There will be two Go / No-Go checkpoints conducted on the cutover weekend. The diagram below provides an overview of the key activities for both ASX and CHESS users.

The Go / No-Go checkpoint will confirm migration success and the decision to proceed in allowing the market to connect to the CHESS replacement system for verification purposes and for ASX to distribute the customer migration reports. The final Go / No-Go decision will confirm Go Live readiness across ASX and the market.  A summary of inputs required for each of these checkpoints from both ASX and the market are listed below:

Checkpoints

Summary of Market input

Go / No-Go checkpoint

(ASX Migration complete)

  • CHESS users have downloaded all messages on the back of Friday night’s batch (completed by 10am Saturday)*

  • CHESS user system upgrades and/or conversions are completed (must be complete before connecting)

Go / No-Go decision

(CHESS users ready)

  • CHESS users to confirm connectivity to CHESS replacement system and perform any necessary Build Verification Testing (BVT)**

  • Review Customer Migration Reports and confirm no major mismatches preventing business as usual processing from Monday

*It is important that all messages are downloaded from current CHESS prior to commencing CHESS user change activity and before consuming the Customer Migration Reports for any review / verification

** The window for CHESS user BVT requires connectivity and verification checks only. If live production transactions are sent during this period, these will need to be rolled back if a “No Go” decision is determined.

ASX will provide fail fee relief for all clearing and settlement participants for the first two weeks post go-live. During this period ASX will monitor failed settlements and work with participants where failures are deemed to have increased from pre go-live metrics.

4.5 Customer Migration Reports

Once ASX signs off on the data migration, a set of customer migration reports will be generated. These reports will communicate the outcomes of ASX’s data migration and provide CHESS users post-migration positions of data relevant to each CHESS user.

Customer migration reports will be generated following a successful migration of data by ASX and a “Go” decision following the first checkpoint. The customer migration reports will provide CHESS users with information pertaining to verified migrated data relevant to them. These reports will also provide information pertaining to data not migrated. Some reports will provide an aggregated summary; for example, Account Summary Report or Security Summary Report, whilst other reports will provide detailed information; for example, the outstanding mFund order report.

The customer migration reports will be customised for each CHESS user type and will provide information unique only to a CHESS user. Additionally, in the event ASX is required to remediate a CHESS record, that information will be provided to the relevant Controlling Participant and share registry.

The table below provides a high level overview of customer migration reports currently in scope.

Further details provided in section 4.5.2 are based on high level design of these reports and are subject to refinement during detailed design and build.

4.5.1 Scope of the Customer Migration Reports

Report Recipients

Report

Report level

Content

Share Registries

Security Summary Report

Summary

Lists all Issuers and Securities managed by a share registry with the breakdown per Security that will include count of Holding, Holding Balance totals and Cum Entitlements per active Corporate Action.

Bid Offers Summary Report

Summary

Provides each share registry with summary information migrated for all inflight Bid Offers they manage on behalf of the Bidders. This covers buyback, takeover and reinvestment type of Bid Offers.

Remediated Accounts Report

Detailed

Provides share registry with list account details where ASX performed remediation during migration. This detail will only be shared where a holding existed under an issuer that is managed by that share registry.

Outstanding Takeover Acceptance Removal Request Report

Detailed

Provides listing of pending Takeover Acceptance Removal requests that have been initiated but not completed in current CHESS and have not been migrated to CHESS replacement system, so the request(s) can be reinitiated post go-live in the CHESS Replacement system, if necessary.

Controlling Participants

 

 

 

Account Summary Report

Summary

Contains summary information of Accounts sponsored by a participant with the breakdown per account type and status.

Non-Migrated Accounts Report

Detailed

Contains non-compliant accounts with no holdings or settlement obligations that were not migrated.

Security Summary Report

Summary

Lists Securities for accounts Controlling Participants manage including breakdown of balances (sub-position balances) and associated CEB where applicable.

Remediated Accounts Report

Detailed

Provides each Controlling Participant with the listing of accounts they control where account details have been remediated by ASX.

Outstanding mFund Orders Report

Detailed

Provides each mFund Broker with the listing of mFund orders that have been initiated but not completed in current CHESS and have not been migrated to CHESS replacement system. This will allow all parties to take appropriate action post go-live date.

Outstanding Change of Controlling Participant Report

Detailed

Provides details of pending Change of Controlling Participant requests that have been initiated by a requesting participant but not completed in current CHESS and have not been migrated.

Outstanding Takeover Acceptance Removal Report

Detailed

Provides listing of pending Takeover Acceptance Removal requests that have been initiated but not completed in current CHESS and have not been migrated.

Requesting Participants

Outstanding Change of Controlling Participant Report

Detailed

Provides details of pending Change of Controlling Participants requests initiated by them that have not been completed in current CHESS and have not been migrated.

PISPs

Outstanding mFund Orders Report

Detailed

Provides each PISP with the listing of mFund Orders that have been initiated but not completed in current CHESS and not migrated in CHESS replacement system.

AMOs

Security Details Report

Detailed

Informs each AMO with details of their own listed securities that have been migrated to CHESS replacement system.

Trading Participant to Clearing Participant Mapping Report

Detailed

Provides each Authorised Market Operator (AMO) with a listing of Trading Participants and their corresponding Clearing Participants that have been set up in CHESS replacement system.

Settlement Participants and C&S Participants

Settlement Instructions Mapping Report

Detailed

Provides Clearing and Settlement Participants with a listing of all settlement instructions that have been migrated to the CHESS replacement system.

Payment Providers

No customer migration report in scope

4.5.2 Content of the Customer Migration Reports

Further details on the Customer Migration Reports, including the purpose and field level details, are provided in Customer Migration Reports.

ASX will establish new CHESS User working groups in Q1 2022 and will provide an opportunity to further discuss the content of customer migration reports. Additionally, ASX will share sample reports ahead of the Market Dress Rehearsals to help CHESS users plan for their activities after receiving the customer migration reports.

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This document provides general information only. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from anyone acting or refraining to act in reliance on this information.

© 2022 ASX Limited ABN 98 008 624 691



Section 05 - Market Dress Rehearsals

In accordance with the 11 May 2022 CHESS Replacement Project Update, the following documentation and timelines will be revised in future documentation releases as ASX continues to work with our technology partner and stakeholders on the timing of project milestones including; industry testing, operational readiness, accreditation, market dress rehearsals and implementation.

Please refer to the 20 June 2022 CHESS Replacement Project Update for the latest information on project status.

 Document Information

Context of this Document

The ASX Cutover and Migration Strategy must be read in the context of the ASX CHESS Replacement Technical Documentation (as applicable).

In the interests of readability and comprehension, where a procedure applies only in the context of securities in a listed company, the specific term security has been used instead of the more generic term financial product.

Change History

Version Date Comment
Current Version (v. 6) Jul 06, 2022 06:46 ASX1
v. 5 Jul 06, 2022 06:37 ASX1
v. 4 Jul 04, 2022 02:23 ASX1
v. 3 Apr 28, 2022 01:15 ASX1
v. 2 Dec 17, 2021 01:11 ASX2
v. 1 Dec 16, 2021 08:53 ASX2

5.1 Objectives and Guiding Principles

Market Dress Rehearsals (MDRs) are mandatory events for all CHESS users. They are designed to replicate the single cutover approach by ensuring all required target state cutover activities can be achieved over a single weekend.

ASX will work with CHESS users to ensure considerations from each organisation’s cutover plan is incorporated into the master runbook. This ensures the timing associated with change or rollback activities is considered in the broader plan and rehearsed as part of MDRs. These, along with target dates for MDRs, will be key topics that ASX will explore as part of the CHESS user working groups or by bilateral engagement in Q1 2022.

5.1.1 Market Dress Rehearsal (MDR) Objectives

The objectives for MDRs are to allow ASX and all CHESS users to:

  • prove, test and refine the cutover approach;

  • confirm the sequence of activities are correct;

  • allow for adjustments to be made to the run sheet, as necessary, to ensure all activities can be completed within the actual migration window;

  • test the communication channels with the ASX command room;

  • test cutover incident management procedures; and

  • ensure success criteria is clear and outcomes achieved.

5.1.2 Rehearsal Guiding Principles

The following is a set of guiding principles that will be applied to plan for the market dress rehearsal phase:

  • all activity required to be performed over the go-live cutover weekend, will be required to be included as part of a rehearsal event;

  • rollback will need to be proven for any change planned for the cutover event;

  • any deviation from the go-live plan for rehearsals must be transparent and may require risk mitigation planning;

  • rehearsal activity is required to mimic the data, timing, resourcing and duration planned for the go-live event;

  • success criteria that is required to be met in order to go-live must form part of either the entry criteria (measured pre event) or critical success factors (measured during the event including the Go decision), refer to section 5.2.2 for additional information; and

  • ASX to ensure internal cutover plans can successfully meet a go-live target prior to entering into Market Dress Rehearsal 1 (MDR 1).

In order for the MDR phase to demonstrate confidence that ASX and CHESS users are ready to go-live, each MDR must rehearse what will occur over the go-live weekend.

5.2 Entry Criteria and Critical Success Factors

5.2.1 Entry Criteria

Prior to the commencement of each MDR, ASX will hold an internal Go / No Go readiness checkpoint that will be scheduled at least 2 weeks prior to ensure both ASX and market participants are ready. Each Go / No Go readiness checkpoint will be assessed against the defined entry criteria for that phase.

If a decision is made not to proceed with an MDR, the market will be advised of the rescheduled commencement.

5.2.1.1 CHESS User Entry Criteria

The entry criteria for CHESS users are:

  • CHESS users confirmed readiness for coming event;

  • CHESS user high level MDR plan including rollback timing shared with ASX in order for critical milestones to be tracked (Due Q2 2022 in order for MDR plan to consider key CHESS user milestones);

  • CHESS user connectivity to ASX “to be” production environment proven prior to event;

  • Customer Migration Report format understood with verification plan in place; and

  • weekend communication contacts confirmed for both CHESS user change managers and ASX support staff.

ASX will publish further details on CHESS user entry criteria, and will engage with CHESS users on this topic in Q1 2022 in advance of publishing no later than July 2022.

5.2.2 Critical Success Factors

Critical success factors (CSF) are used to inform go-live event success. Each CSF is a measurable verification scenario that is performed as part of the cutover weekend and is fundamental in determining a Go or No-Go decision

5.2.2.1 CHESS User Critical Success Factors

Currently there are two primary critical success factors that CHESS users will be required to validate and report back to ASX as part of weekend events.

  • CHESS users to have proven connectivity and performed the agreed verification task. See section 5.2 on suggested verification tasks.

  • CHESS users to have reviewed the relevant Customer Migration Reports and confirmed no major concern that would prevent go-live.

ASX will publish further details on CHESS critical success factors and contingency planning, and will engage with CHESS users on these topics in Q1 2022 in advance of publishing no later than July 2022.

5.3 MDR environment considerations

All market dress rehearsals will be conducted in the CHESS replacement ‘To be’ Production Environment. This ensures all tasks in scope for the go-live weekend are rehearsed in the ASX environment that will become the production environment.

As outlined in section 6, the ASX CHESS ‘To be’ Production Environment will be available following each MDR to support post MDR Day 1 testing. If CHESS users plan to participate in this phase of testing, their MDR environment must also be available post the MDR weekend activities completing.

ASX prefers that CHESS users also adopt a ‘To be’ Production Environment strategy for each rehearsal. This ensure all MDR events will validate the cutover process on target Production environment and infrastructure. However, following focus group feedback, ASX understands that some organisations will leverage a production like environment for MDRs. This is an area that requires further discussion as part of CHESS user engagement in Q1 2022.

5.3.1 Handling Unmasked Production data

All MDRs will be using unmasked production data to validate the migration and cutover process for the following reasons:

  • masked data will not expose all data quality exceptions where remediation actions may be required from either ASX or Controlling Participants. This means the exception handling process will not be fully rehearsed in MDRs;

  • data migration requires reconciliation, and reconciliation results will not be reliable or reflective of the real event if it cannot be performed on unmasked data;

  • ASX will not be able to generate meaningful customer migration reports for CHESS users to review; and

  • CHESS users will not be able to complete or execute a number of post MDR day 1 test scenarios with masked data.

5.3.2 Security controls for MDR environments

Any environment that CHESS users use to connect to ‘to-be’ Production must have appropriate data security controls in place. In order to ensure that unmasked production data is protected:

  • ASX will use the ‘to-be’ Production environment with production level security controls. An independent security assessment will be performed to confirm adequate ASX security controls are in place;

  • ASX expects that CHESS users will have production level security implemented in the environment to be used for MDRs and that CHESS users will perform adequate levels of security testing appropriate for a production environment;

  • It is strongly recommended that the security posture of MDR environments is focused on protecting confidentiality of data and is aligned with best practise ISMS frameworks like ISO27001 and/or NIST Cyber security framework.

5.4 MDR data snapshots

MDRs will use a production data cut. CHESS users will be required to consider go-live preparation tasks when securing the snapshot targeting an MDR.

The approach to what date each of the MDR data snapshot will take was a key topic discussed during the Focus Groups held during November 2021. While on balance more stakeholders prefer ‘current date’ as this aligns to the go-live plan, others have expressed strong views on technical constraints including time taken to complete a backup and restore that may be logistically challenging immediately preceding a MDR weekend. As a result, unless these technical challenges can be overcome, each MDR may be required to use prior dated production snapshots.

Following engagement with CHESS users in Q1 2022, it is now confirmed that each MDR will follow a current dated data snapshot approach.

5.5 Rollback as part of MDR

The high level approach to rollback will be to reverse any change made to live production integrations and systems as part of the go-live weekend.

Key points relating to rollback as part of an MDR are that:

  • ASX will execute the ASX rollback plan as part of internal rehearsal events, and at least 1 MDR event with the market;

  • execution of CHESS user rollback plans will be requested as part of selected MDR events, however ASX will not evidence CHESS users connecting back into current CHESS;

  • ASX will seek to understand the duration of each CHESS user’s rollback plan to ensure the final Go / No-Go and point of no return takes all rollback plans into consideration; and

  • CHESS users will be required to ensure rollback plans are validated internally prior to the MDR phase.

The window for CHESS user BVT requires connectivity and verification checks only. If Production transactions are sent during this period, these will need to be rolled back if a No Go decision is determined.

5.6 Communication

5.6.1 Communication during events

To ensure CHESS users are informed of status throughout each event, ASX will provide live updates to the System Status page or similar, advising of current status including any known high impact issues.

For scenarios where CHESS users are required to contact ASX, existing support teams will be leveraged to provide dedicated support during MDRs and the go-live cutover event. Support phone contact details will be provided that will allow CHESS users to contact ASX during weekend hours to either request updates on status tracking, or to provide information on how their respective change activity is tracking.

The event communication plan will be provided as part of the MDR overview document planned to be published July 2022.

5.6.2 Communication following each event

A summary version of the MDR outcomes will also be published externally by the end of the week following an MDR.

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This document provides general information only. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from anyone acting or refraining to act in reliance on this information.

© 2022 ASX Limited ABN 98 008 624 691



Section 06 - Post MDR Day 1 Testing

In accordance with the 11 May 2022 CHESS Replacement Project Update, the following documentation and timelines will be revised in future documentation releases as ASX continues to work with our technology partner and stakeholders on the timing of project milestones including; industry testing, operational readiness, accreditation, market dress rehearsals and implementation.

Please refer to the 20 June 2022 CHESS Replacement Project Update for the latest information on project status.

(info) Table of Contents

 Document Information

Context of this Document

The ASX Cutover and Migration Strategy must be read in the context of the ASX CHESS Replacement Technical Documentation (as applicable).

In the interests of readability and comprehension, where a procedure applies only in the context of securities in a listed company, the specific term security has been used instead of the more generic term financial product.

Change History

Version Date Comment
Current Version (v. 3) Jul 04, 2022 02:24 ASX1
v. 2 Apr 28, 2022 01:09 ASX1
v. 1 Dec 16, 2021 08:53 ASX2

6.1 Overview of Post MDR Day 1 Testing

CHESS users will have the opportunity to test a number of business workflows in the ‘To be’ Production Environment following each MDR weekend. The window of testing following a dress rehearsal event will be a test phase referred to as ‘post MDR day 1’ testing. It is expected that all activity can be conducted on the Monday system day. The list of possible scenarios can be found in section 6.2, which includes activity following the Monday settlement.

Post MDR day 1 testing is aimed to provide CHESS users with the ability to test supported scenarios with production data. This phase is not a parallel test and will not be expected to reconcile to production.

ASX is planning to run settlement as part of Post MDR day 1 activities. This is to allow clearing and settlement participants to consume the messages created by settlement batch and ensure they are successfully processed by back office systems. The movement of units and cash will vary from that of production as the pre-settlement activities (such as bilateral matching) will be different. It is therefore important for clearing and settlement participants to understand results will be different (and potentially significantly) to production but that the objective of the test is to ensure back office systems can support the output of settlement messages even if there is a high level of settlement fails.

Similar to other phases of Industry Testing, a Post MDR Day 1 Guide to Testing Services will be published externally alongside the MDR overview. This will provide information on how this phase will be coordinated depending on the number of CHESS users involved. These documents be delivered in accordance to Section 6.4 of the Industry Test Strategy.

6.2 Post MDR Day 1 test scenario examples

The table below outlines a list of scenarios that CHESS users may run in ‘To be’ Production following an MDR event.

Some scenarios below (noted with * ) will require multi-party involvement and will be dependent on other CHESS user participation.

CHESS User Group

Functional Area

Example Post MDR Day 1 Test Scenario

  • Clearing and Settlement Participant; and

  • Settlement Participant

Accounts

  • Request on demand report e.g. account notification reporting (ACNT)

  • Ability to modify or cancel accounts that were migrated

  • Ability to create new accounts

  • Transfer a migrated account to another participant (EOD process)*

  • Investor data – sending of bank account* and TFN information

  • Clearing and Settlement Participant; and

  • Settlement Participant

Holdings

  • Request on demand report e.g. Holding Balance (HBAL)

  • Ability to transfer securities between two accounts controlled by the Participant

  • Ability to transfer securities between Participants within and outside of settlement

  • Clearing and Settlement Participant; and

  • Settlement Participant

Holdings

  • Ability to submit a bid offeror acceptance for an active corporate action event of type BIDS, TEND or OTHR

  • Ability to initiate a bid offeror cancellation for an active corporate action event of type BIDS, TEND or OTHR*

  • SRN Enquiry*

  • Transfers and conversions between sub-registers (CHESS to issuer)

  • Transfers and conversions between sub-registers (issuer to CHESS)*

  • Clearing and Settlement Participant; and

  • Settlement Participant

Scheduled Bilateral Settlement Instructions

  • Request on demand report e.g. Obligation status report

  • Ability to amend key fields, or request a cancel

  • Clearing Participant

Scheduled Market Trades

  • Request on demand report e.g. Obligation status report

  • Clearing and Settlement Participant; and

  • Settlement Participant

Settlement

  • CHESS users to consume the messages created by settlement batch and ensure they are successfully processed by their back office systems.

  • Send new unilateral or bilateral* instruction for matching

  • Clearing and Settlement Participant; and

  • Settlement Participant

mFund

  • Request new application or redemption and complete workflow, where possible*

  • PISPs

mFund

  • Process new application or redemption to completion, where possible*

  • Payment Providers

Settlement

  • Accept payment requests*

  • Share Registry (and Bid Offeror)

Accounts

  • SRN enquiry*

  • Holding adjustments

  • Ability to receive and acknowledge Investor data – bank account*

  • Ability to receive Investor data – TFN information*

  • Consume EOD Reports

  • Ability to accept a bid offeror acceptance for an active corporate action event of type BIDS, TEND or OTHR*

  • Ability to accept/reject a bid offeror cancellation for an active corporate action event of type BIDS, TEND or OTHR*

  • Ability to receive transfers and conversions between sub-registers (CHESS to issuer)*

  • Ability to process transfers and conversions between sub-registers (issuer to CHESS)*

  • AMO

EOD price

  • Report EOD price

  • Download security details report generated as part of EOD

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This document provides general information only. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from anyone acting or refraining to act in reliance on this information.

© 2022 ASX Limited ABN 98 008 624 691



Section 07 - 'To be' Production Environment

In accordance with the 11 May 2022 CHESS Replacement Project Update, the following documentation and timelines will be revised in future documentation releases as ASX continues to work with our technology partner and stakeholders on the timing of project milestones including; industry testing, operational readiness, accreditation, market dress rehearsals and implementation.

Please refer to the 20 June 2022 CHESS Replacement Project Update for the latest information on project status.

(info) Table of Contents

 Document Information

Context of this Document

The ASX Cutover and Migration Strategy must be read in the context of the ASX CHESS Replacement Technical Documentation (as applicable).

In the interests of readability and comprehension, where a procedure applies only in the context of securities in a listed company, the specific term security has been used instead of the more generic term financial product.

Change History

Version Date Comment
Current Version (v. 3) Jul 06, 2022 06:48 ASX1
v. 2 Jul 04, 2022 02:24 ASX1
v. 1 Dec 16, 2021 08:53 ASX2

7.1 Characteristics of ‘To be’ Production

All cutover rehearsals will be conducted in the ASX CHESS replacement system ‘To be' Production environment. This ensures all tasks in scope for the go-live weekend are rehearsed in the environment that will become the production environment.

Post Market Dress Rehearsal (MDR) day 1 testing will also take place in the ‘To be' Production environment following an MDR.

The ‘To be' Production environment will be dedicated to MDR events and Post MDR Day 1 Testing. Note that ASX will implement production security controls to protect production data. It will be expected that similar controls will be implemented by CHESS users as part of preparing for MDRs.  

7.2 Connectivity and On-boarding to ‘To be' Production

All connectivity networks and access methods will be available in the ‘To be' Production environment.

Connectivity Network

Access Methods

ASXNet*

  • Ledger API (Node Access)

  • AMQP (ISO 20022 XML Messaging)

  • CHESS User Interface

  • FIX (Approved Market Operators only)

SWIFTNet

  • SWIFT (ISO 20022 XML Messaging)

*Including IPSec VPN, Switch in Cabinet and Cross Connect.

7.3 On-Boarding

On-boarding for CHESS users refers to the steps required to provide access to the environment required for MDRs, Post MDR Day 1 testing and go-live.

  • Network connectivity provisioning - this involves ASX and CHESS users configuring and testing the links between their respective data centres. This relates to the configuration of ASX Net sites for Ledger API, AMQP and FIX users. For any SWIFTNet clients, this refers to the provision of the participants into the SWIFT CUG (Closed User Group).

  • Security authentication - Authentication certificates will be exchanged between ASX and CHESS users. This security process will enable secure access to the CHESS replacement system. Participants will be able to create and load security certificates into the ASX CSAM portal. A Transport Level Security (TLS) certificate is required for those using Ledger API, AMQP or FIX, to provider for privacy and data integrity in all information shared. Additional certificates are required for ISO 20022 message signing (AMQP) and Token Acquisition (Ledger API) to provide further security around user authentication.

The first step of the onboarding process is for participants to complete a ‘To be' Production application Form. Completed application forms are required to allow subscribers to connect to the ‘To be' Production Environment.

The ‘To be' Production environment application form is to be published in a subsequent release, in accordance to Section 6.4 of the Industry Test Strategy.

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This document provides general information only. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from anyone acting or refraining to act in reliance on this information.

© 2022 ASX Limited ABN 98 008 624 691



Appendix A - Focus Group Summary

In accordance with the 11 May 2022 CHESS Replacement Project Update, the following documentation and timelines will be revised in future documentation releases as ASX continues to work with our technology partner and stakeholders on the timing of project milestones including; industry testing, operational readiness, accreditation, market dress rehearsals and implementation.

Please refer to the 20 June 2022 CHESS Replacement Project Update for the latest information on project status.

(info) Table of Contents

 Document Information

Context of this Document

The ASX Cutover and Migration Strategy must be read in the context of the ASX CHESS Replacement Technical Documentation (as applicable).

In the interests of readability and comprehension, where a procedure applies only in the context of securities in a listed company, the specific term security has been used instead of the more generic term financial product.

Change History

Version Date Comment
Current Version (v. 2) Jul 04, 2022 02:25 ASX1
v. 1 Dec 16, 2021 08:53 ASX2

Focus Group Summary

In advance of ASX publishing the approach to cutover and migration by end of this year, the focus groups held in early November invited feedback to a series of questions relating to market dress rehearsals (MDRs) and the cut-over weekend, including any potential challenges and issues. 

Key themes from the feedback provided by focus group attendees are set out below.

What further information can ASX provide to facilitate stakeholders activities and planning?

A number of focus group members are seeking more granular information to help them prepare and plan for MDRs and the cut-over weekend including:

  • More granular information on the timing of activities to be provided earlier than July 2022, including all CHESS user actions to be performed prior to CHESS end of day, with defined check points

  • To allow CHESS users to check end of day reports are functioning as expected on the Sunday evening

  • A few have asked that ASX give consideration to running a settlement batch post MDR to provide a significant measure of confidence that a settlement batch can be executed in the new environment including pre and post settlement obligation status reports

  • Detail on the entry and exit criteria for the go/no go decision

  • More information on how the ASX will communicate updates during MDRs and cutover

High level timing for the cutover weekend

While a number of stakeholders did not express concerns with the high level timeline presented for the cutover weekend, some concerns were expressed including:

  • Timeline is very tight and internal stakeholder dress rehearsals and market dress rehearsals will be key to confidently confirm the timeline allows stakeholders to complete the required activities in the allocated time

  • Timing of  the go/no go decision needs to be confirmed to allow stakeholders to understand if this affords enough time to perform their internal rollback processes and to be ‘production ready’ for start of day Monday in the event of a ‘no go’ decision

  • There is less concern on the timing of the MDRs if prior dated snapshots are used (as opposed to current date data)

Snapshot of data to support Market Dress Rehearsals

There are mixed views in using current date data on the MDR weekend versus some prior dated data and potential risks associated with each.   While on balance more stakeholders prefer ‘current date’ as this most closely aligns to the go-live plan, others have expressed strong views on technical constraints including the time taken to complete a backup and restore which may be logistically challenging immediately preceding a MDR weekend if using current date data.

This item will require more time to understand if current date is a feasible option to plan for.

CHESS user environments for Market Dress Rehearsals

There are strong views that CHESS users cannot use their current production environment for MDRs as it needs to be retained and untouched for production processing.  

Many CHESS users will also not be able to stand-up a separate “to be” production environment that will then become their production environment at go-live. 

The majority of responses received highlighted that CHESS Users will primarily use a Prod like test environment to participate in MDRs, rather than a ‘to-be’ production environment. In these situations, ASX will need to prove CHESS users can connect their production environment to ASX’s ‘To be’ Production Environment prior to go-live.

Other factors for ASX’s further consideration

  • More detailed information needs to be provided on the migration of NBO batch instructions from old CHESS that will be settled in the CHESS replacement system

  • Consideration should be given to making limited CHESS functions available on the Sunday post a go decision to facilitate CHESS user business verification testing of CHESS user systems

  • Samples of customer migration reports should be made available early to allow CHESS users the option to plan for reconciliation processes including the option to automate reconciliation processes

  • Potential resourcing and environment challenges in supporting both MDR2 and IWT2 in February 2022

  • Consideration to a potential blackout period for non-urgent corporate action events on the Friday pre migration and the Monday post migration

  • Consideration for a non-settlement day on the Friday (pre migration) and the Monday (post migration)

  • ASX should convene cohort specific focus groups or working groups to collectively work through the requirements and plan for a successful cutover and migration

Next steps

Where relevant, ASX will address the feedback as part of this publication or will be discussed as part of CHESS user bilaterals in Q1 of 2022.  In addition, ASX will also present the key themes from the feedback in the 15 December Implementation and Transition working group webinar


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This document provides general information only. ASX Limited (ABN 98 008 624 691) and its related bodies corporate (“ASX”) makes no representation or warranty with respect to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from anyone acting or refraining to act in reliance on this information.

© 2022 ASX Limited ABN 98 008 624 691

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