By Gaurav Mehta, Chief Commercial Officer, NOVA CMX
Release 1 of the CHESS replacement went live in April 2026. There was relief, a few celebratory drinks, and perhaps some hope that the hard part was finally behind us.
Not quite.
Release 2 – the one that fundamentally rewires settlement and sub-register operations, is targeted for 2029. Three years sounds generous. In infrastructure terms, it’s barely enough time to order the coffee.
A proper programme involving ISO 20022 integration, workflow redesign, accreditation and testing can easily consume 18 to 24 months. Add budgeting, vendor decisions and internal approvals, and the time to start isn’t 2028.
It’s now.
This isn’t just a settlement project
Release 2 replaces settlement and sub-register functionality, enhances corporate actions and further modernises clearing. On paper, that sounds manageable.
In practice, it touches almost everything.
ASX’s proprietary EIS messages are disappearing, making way for ISO 20022 – the same standard used by major market infrastructures globally. This isn’t a find-and-replace exercise. Reconciliation processes, exception management, reporting, corporate actions and network architecture all come under the spotlight.
By the end of 2026, all five Software Drop User Technical Documents will be available. If your teams haven’t started reviewing the first two drops covering accounts, holdings and settlement instructions, you’re not disastrously late, but you’re certainly no longer early.
And anyone who’s lived through a market infrastructure project knows there’s no prize for being fashionably late.
Pick your lane carefully
Release 2 offers four connectivity options, and the choice you make now will shape the next three years.
Ledger API (DAML/REST) is powerful but not for the faint-hearted. Suited to large brokers and custodians seeking real-time access and willing to undertake a major infrastructure programme.
AMQP Messaging provides a sensible path for many brokers looking to evolve without reinventing themselves – a natural migration path for many mid-tier brokers.
SWIFT ISO 20022 naturally suits custodians already living in that world.
And then there’s CHESS UI – simple, low-complexity and perfectly reasonable for smaller firms. But if you’re processing meaningful volumes, relying solely on a browser interface is a bit like towing a boat with a hatchback. Technically possible. Not ideal.
Meanwhile, BT Radianz, Telstra and Optus VPN connections are heading for retirement. ASX Net migration isn’t something to leave for Future You to deal with.
Future you will not thank present you.
The three-year playbook
2026: Mobilise
Appoint an executive sponsor. Stand up a programme office. Decide on your connectivity strategy. Start ISO 20022 gap analysis and begin migrating to ASX Net.
Most importantly, clean up your registration data early. Data problems discovered in 2028 have a nasty habit of becoming board problems in 2029.
2027: Build
Integration, accreditation and process redesign become the main event.
The old Net Broker Obligation (NBO) model gives way to Novated Net Delivery Position (NNDP). Reconciliation processes change. Operations teams need retraining. Technology teams need patience. Everyone needs coffee.
This is where programmes either gather momentum or begin collecting PowerPoint slides.
2028: Test
Technical accreditation. CHESS User Readiness and Operational Readiness certification must all be completed. Industry-wide testing is mandatory.
Cutover plans should be rehearsed. Rollback plans should exist. Client communication should be finalised.
Hope is not a testing strategy.
2029: Go live
There is one production cutover. No second attempt. No “undo” button.
The US T+1 migration showed what coordinated preparation can achieve. These projects reward discipline. They are considerably less forgiving of improvisation.
Starting late is expensive
Boutique firms taking the CHESS UI path may spend between $250,000 and $750,000.
Mid-tier brokers adopting AMQP or SWIFT connectivity should expect programmes in the $1 million to $4 million range.
Large brokers and custodians should view Release 2 as a genuine infrastructure investment.
But timing matters more than absolute cost.
Start now and the spend is spread across several financial years. Wait until 2027 or 2028 and you’ll be buying scarce expertise at premium prices alongside everyone else who suddenly discovered the deadline wasn’t theoretical after all.
NOVA CMX’s commitment
In June 2026, NOVA CMX received CHESS Accreditation from ASX Settlement, confirming end-to-end message compatibility.But accreditation isn’t the destination. It’s simply the entry ticket. It reflects our long-term commitment to the Australian market.
For more than 30 years, we’ve been building post-trade infrastructure across ten countries and supporting 18+ Tier-1 institutions. Today, NOVA CMX already supports digital asset workflows, real-time settlement, fractional share trading, securities borrowing and lending (SBL), and real-time custody alongside traditional market operations. Our clients process over 55% of SGX daily volumes, 40% of HKEX flows and 27% of Bursa Malaysia trade values, while achieving average operational cost reductions of 34%.
Because post-trade isn’t standing still, and neither are the markets.
This isn’t a pitch for one platform over another. The reality is simpler. Whether you build, buy or partner, the firms that start now will sleep better in 2029.
The bottom line
CHESS Release 2 is the biggest change to Australian post-trade infrastructure in decades.
The firms that begin preparing in 2026 will approach 2029 methodically.
The firms that treat it as a 2028 problem may discover that market infrastructure projects behave a lot like Sydney traffic.
Ignore them long enough, and eventually they become your entire day.
For the complete phase-by-phase roadmap, risk register and system impact assessment, download the NOVA CMX whitepaper, The CHESS Release 2 Readiness Roadmap (June 2026).
DOWNLOAD SIAA Monthly – July edition PDF
BACK TO SIAA MONTHLY – JULY 2026