The ASX Ltd (ASX: ASX) share price is in the red today, down 0.57%.
This as the S&P/ASX 200 Index (ASX: XJO) notches up another day of gains, up 0.5% at the time of writing.
ASX shares closed on Friday at $80.49 and are currently trading for $80.03.
Here’s the update that looks to be dragging on the listed exchange group today.
What update was announced?
The ASX share price has come under some selling pressure after the company reported a delay in the rollout of its CHESS replacement project.
The ASX has been working on a blockchain-based clearing and settlement system to replace its CHESS platform.
If you’re not familiar, CHESS stands for Clearing House Electronic Subregister System. While that’s a mouthful, it’s just a computer system the ASX employs to settle transactions in shares and record shareholdings.
The ASX pointed to the timing of the next software release as causing the delay.
The company opened its first fully-integrated industry test environment (ITE1) in November. It said accreditation can begin once this software is available, which will now be in July instead of late April.
The ASX noted, “there is a strong likelihood of delay to the go-live date. We will engage with our software provider and stakeholders to assess the impact, and will update the market on this process.”
Tim Hogben, group executive of ASX’s securities and payments business, said:
We now have 25 software providers – including all vendors – working through functional testing and we have built and successfully system tested almost all mandatory features and over 90% of optional features of the new systems’ functionality with software providers in ITE1.
Looking ahead to the rollout of the replacement system, Hogben added:
CHESS replacement is an ongoing process with the industry, and industry engagement will be even more important as we move into the CHESS user testing environment and operational readiness activities, and as we agree an approach that ensures utmost confidence in a safe, secure and performant system at go-live.
ASX share price snapshot
The ASX share price has been under pressure in 2022, down 13% since the opening bell on 4 January.
By comparison, the ASX 200 is down 1.9% year to date.
The post Game of chess? Here’s what’s dragging the ASX Ltd (ASX:ASX) share price lower today appeared first on The Motley Fool Australia.
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More reading
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- Top brokers name 3 ASX shares to sell today
- No sale? What you need to know about the most recent ASX outage
- Why ASX, Coronado, Graincorp, and Integral Diagnostics shares are dropping today
- Leading brokers name 3 ASX shares to sell today
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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