The $250 million replacement of the ASX clearing and settlement system is due to complete the bulk of its testing this year before going live in April 2023.
This year is make or break for the country’s highest-profile corporate technology project, which is being implemented by the equity market operator, the ASX.
ASX chief executive Dominic Stevens inherited the CHESS replacement project from his predecessor Elmer Funke Kupper.As the costs rise and deadlines get pushed back, there is a tendency for the true believers in the project to become captured and view the rising sunk costs as reason to keep going full steam ahead.
ASX chief executive Dominic Stevens has absolute confidence in the ability of his key IT executive and head of the CHESS project, Tim Hogben, to complete the job in time for a “go-live” in April 2023. The ASX has an ambitious timetable in place for testing the new distributed ledger system. This year is make or break because the introduction of new processes and systems includes overlapping changes that must be made if there is not to be a further delay in the start date.The CHESS replacement has been delayed twice already, and if it meets the April 2023 “go-live”, it will be two years behind the original schedule.
He says the stock is expensive because you are paying 36.5 times fiscal 2022 earnings per share for low single-digit earnings growth. Also, he says, it is expensive relative to global peers which trade on lower PE multiples and higher earnings growth.
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