The ASX faces a ‘ticking time bomb’ as technology upgrades delayed

The ASX is sitting on a “ticking time bomb” of ageing technology as it attempts to simultaneously upgrade major systems, one of which is at least seven months behind schedule, with costs far higher than investors expected.

The market operator’s ability to roll out critical projects to its settlement and clearing systems is already under question, after a failure to upgrade its ageing CHESS system – which transfers ownership and manages payment for equities – with blockchain technology resulted in a write-down of more than $200 million.