ASXLimited, which operates the Australian Securities Exchange, has pushed back the start date of its blockchain-based CHESS replacement, in response to stakeholder concerns.\n\u2018Day 1\u2019 of the ASX\u2019s distributed ledger technology (DLT) platform, which replaces the decades old Clearing House Electronic Subregister System, will now happen in March 2021. It had been due to roll out during the last quarter of 2020.\n \nASX received 41 written submissions and feedback from a number of working groups, with stakeholders questioning whether the implementation window \u201cwas achievable given the significance of the technology change\u201d, the company said.\n \nThe modified roll-out plan makes room for an additional six months of user development and testing.\n \n\u201cWith these revisions ASX is confident that a successful market-wide implementation of the CHESS replacement system will now be achieved. We do not underestimate the challenge to replace CHESS and transition the market to the new system,\u201d the ASX said.\n \nIn response to the ASX\u2019s April consultation paper, CHESS Replacement: New Scope and Implementation Plan, users also requested earlier access to documentation and help in forming a \u201cbetter understanding the potential benefits of a DLT-based system\u201d.\n \n\u201cOverall, there was broad support for ASX\u2019s approach and for the new features being implemented, although with differences about their relative priorities,\u201d the ASX added.\n \nThe company is, however, sticking to its original plan of switching systems in a single cutover weekend, saying it was the \u201cmost appropriate solution and is lower risk than other alternatives such as running multiple systems in parallel\u201d.\n \nCHESS move\nCHESS has been used to record shareholdings and manage the clearing and settlement of equity transactions in Australia since it was introduced in 1994. Although it continues to be \u201crobust and reliable\u201d, the ASX said last year, the exchange istaking the opportunityto replace it with \u201ca next generation post-trade platform using contemporary technology\u201d.\n \nThe decision to replace CHESS with a distributed ledger technology (DLT)based platform was made in December last year. The new platform is being developed by US software firm Digital Asset using its proprietary smart contract modelling language.\n \nThe new system will be operated by ASX on a secure private network where all participants are known, \u2018permissioned\u2019 to have access, and must comply with ongoing and enforceable obligations.\n\u201cThe industry benefits of the DLT-based solution include: reduced risk, cost and complexity through improved record keeping; reduced need for reconciliation between multiple databases; more timely transactions and better quality source of truth data,\u201d the ASX said.\n \nThe Australian Securities Exchange is set to be the first DLT-enabled stock exchange in the world. The technology is now being considered by other exchanges, including the Abu Dhabi Securities Exchange, and the Shanghai Stock Exchange, the world\u2019s fourth largest, which announced plans to use DLT in July.