Financial exchange's efforts to replace core systems with blockchain founder – again
(2022/08/04)
- Reference: 1659587407
- News link: https://www.theregister.co.uk/2022/08/04/asx_blockchain_delayed_again/
- Source link:
One of the world's most prominent and mission–critical uses of the blockchain - The Australian Securities Exchange's (ASX) project to replace its CHESS core trading systems with a distributed ledger – has struck further trouble.
As The Register has previously noted, the project commenced in 2017 but saw its go-live date pushed back from [1]2021 to April 2023 , before the ASX [2]warned that deadline would likely be missed.
Yesterday the bourse revealed "we do not expect that the go-live date for new CHESS could be before late 2024."
[3]
A [4]statement [PDF] attributed the delay to analysis that revealed "more development is required than previously anticipated to meet ASX's scalability and resilience requirements for the application. This is contributing to delays to the delivery of the remaining technical components of the application."
[5]
[6]
The ASX has worked with an outfit called Digital Asset – a purveyor of the smart-contract language DAML – on the project.
The statement reveals that Digital Asset's work will be independently reviewed by Accenture, and "The review will also identify necessary actions for ASX to communicate a revised timetable to finish the project."
[7]
An [8]update [PDF] sent to ASX stakeholders indicates that the organization's leadership believes "a fresh set of eyes" is needed to reassess the project.
That opinion comes from Helen Lofthouse, who started work as CEO and managing director at the ASX on August 1.
The stakeholder letter also reveals that project testing planned for September 2022 has been postponed.
[9]A year of software testing appears wasted as ‘upgrade’ shutters Australian stock exchange on its debut
[10]Epic snafu takes Australian Securities Exchange offline
[11]Microsoft to blockheads: NFTs and blockchains aren't welcome in Minecraft
The Register understands that the current version of CHESS is a COBOL application running on hardware powered by Intel's [12]defunct Itanium architecture .
The planned version of CHESS uses the VMware Blockchain – a choice The Register understands was made because it's a fine distributed ledger and because the company's expertise in packaging and publishing applications made it ideal for the application's architecture of market participants being able to run their own CHESS nodes. The Register understands that Virtzilla's wares are not the source of the CHESS replacement's problems.
[13]
The ASX's 2017 decision to adopt blockchain was seen as a bold bet on the technology, and one that advocates hoped could provide a proof of concept that distributed ledgers could perform at scale in a very sensitive role.
With no go-live day in sight, and the project seemingly in considerable trouble, it may have become a cautionary tale. ®
Get our [14]Tech Resources
[1] https://www.theregister.com/2020/10/28/asx_chess_distributed_ledger_delayed/
[2] https://www.theregister.com/2022/03/28/asx_blockchain_chess_delay/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www2.asx.com.au/content/dam/asx/about/media-releases/2022/29-03-august-chess-replacement-schedule-delay-independent-review.pdf
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www2.asx.com.au/content/dam/asx/markets/clearing-and-settlement-services/chess-replacement-project-update-august-2022.pdf
[9] https://www.theregister.com/2020/11/17/asx_outage/
[10] https://www.theregister.com/2016/09/19/australian_securities_exchange_offline/
[11] https://www.theregister.com/2022/07/21/minecraft_nft_ban/
[12] https://www.theregister.com/2021/07/30/end_of_itanium_shipments/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://whitepapers.theregister.com/
As The Register has previously noted, the project commenced in 2017 but saw its go-live date pushed back from [1]2021 to April 2023 , before the ASX [2]warned that deadline would likely be missed.
Yesterday the bourse revealed "we do not expect that the go-live date for new CHESS could be before late 2024."
[3]
A [4]statement [PDF] attributed the delay to analysis that revealed "more development is required than previously anticipated to meet ASX's scalability and resilience requirements for the application. This is contributing to delays to the delivery of the remaining technical components of the application."
[5]
[6]
The ASX has worked with an outfit called Digital Asset – a purveyor of the smart-contract language DAML – on the project.
The statement reveals that Digital Asset's work will be independently reviewed by Accenture, and "The review will also identify necessary actions for ASX to communicate a revised timetable to finish the project."
[7]
An [8]update [PDF] sent to ASX stakeholders indicates that the organization's leadership believes "a fresh set of eyes" is needed to reassess the project.
That opinion comes from Helen Lofthouse, who started work as CEO and managing director at the ASX on August 1.
The stakeholder letter also reveals that project testing planned for September 2022 has been postponed.
[9]A year of software testing appears wasted as ‘upgrade’ shutters Australian stock exchange on its debut
[10]Epic snafu takes Australian Securities Exchange offline
[11]Microsoft to blockheads: NFTs and blockchains aren't welcome in Minecraft
The Register understands that the current version of CHESS is a COBOL application running on hardware powered by Intel's [12]defunct Itanium architecture .
The planned version of CHESS uses the VMware Blockchain – a choice The Register understands was made because it's a fine distributed ledger and because the company's expertise in packaging and publishing applications made it ideal for the application's architecture of market participants being able to run their own CHESS nodes. The Register understands that Virtzilla's wares are not the source of the CHESS replacement's problems.
[13]
The ASX's 2017 decision to adopt blockchain was seen as a bold bet on the technology, and one that advocates hoped could provide a proof of concept that distributed ledgers could perform at scale in a very sensitive role.
With no go-live day in sight, and the project seemingly in considerable trouble, it may have become a cautionary tale. ®
Get our [14]Tech Resources
[1] https://www.theregister.com/2020/10/28/asx_chess_distributed_ledger_delayed/
[2] https://www.theregister.com/2022/03/28/asx_blockchain_chess_delay/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www2.asx.com.au/content/dam/asx/about/media-releases/2022/29-03-august-chess-replacement-schedule-delay-independent-review.pdf
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www2.asx.com.au/content/dam/asx/markets/clearing-and-settlement-services/chess-replacement-project-update-august-2022.pdf
[9] https://www.theregister.com/2020/11/17/asx_outage/
[10] https://www.theregister.com/2016/09/19/australian_securities_exchange_offline/
[11] https://www.theregister.com/2022/07/21/minecraft_nft_ban/
[12] https://www.theregister.com/2021/07/30/end_of_itanium_shipments/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YuuY3FzD-6dkP@N84DcphAAAAFc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://whitepapers.theregister.com/
Interesting
Pascal Monett
Nice to see that somebody is trying to make something useful out of blockchain.
Interesting to see that they're struggling.
That might be because blockchain does not scale.
Mine's the one with the SQL database that scales perfectly . . .
Not suited for task
sarusa
All these people trying to cram a round peg in a cthulhu shaped hole because it's the hot new thing and the market is flooded with scammy consultants.
Like NFTs being a terrible solution for in-game problems that have been long solved better with other means, there are very few things a blockchain is actually needed for other than getting money thrown at you during funding rounds (this might not be the case any more).
Re: Not suited for task
Doctor Syntax
there are very few things a blockchain is actually needed for other than getting money thrown at you during funding rounds
Funding rounds seem to be unnecessary for finding suckers in this game.
Blockchain?
So the ASX stock exchange isn't trustable to record transactions on ASX?
Do they plan on having voting? So if enough entities agrees a consensus blockchain record that is different from ASX's record, will those be able to overrule ASX?
But then what if you have trading, but don't participate directly in the blockchain? Doesn't that mean, you cannot rely on ASX's transaction record because it could be overturned by blockchain consensus?
And perhaps some of those blockchain entities would be foreign, Chinese even. So you're telling me it could be overturned and outside Aussie legal domain?
And the privacy problem, you do a trade, and it's between the buyer, seller and the market. But stick it in a big shared blockchain and you're violating a mass of privacy laws around the world. Plus of course participating in the block chain lets you see everyone else hand, so it favors the people in the blockchain.
Just cancel it already, dumb ass idea. Take away somebodies red stapler.