ASX appoints Tim Whiteley as CIO as CHESS replacement continues

The Australian Securities Exchange (ASX) has announced the appointment of Tim Whiteley as Chief Information Officer (CIO).

Effective 1 July 2023, Tim Whiteley will be responsible for the Group’s enterprise technology functions, technology and data security, data governance, technology infrastructure, and delivering ASX’s multi-year technology modernization program and capability uplift.

Tim Whiteley was appointed to lead ASX’s CHESS Replacement Solution Design work in November 2022 following the Group’s decision to reassess its CHESS replacement project.

“Continuity of technology leadership for CHESS replacement”

Helen Lofthouse, Managing Director and CEO at ASX, said: “Tim is a highly skilled technology transformation executive who brings to ASX more than 25-years’ experience in business and technology roles across Australian financial services. I am pleased to be making this announcement after a competitive global search with very high quality candidates. Tim’s deep expertise in technology and project execution in the financial services industry will be invaluable as ASX looks to contemporise its technology and deliver critical market infrastructure.”

“Importantly, Tim’s appointment as CIO provides continuity of technology leadership for CHESS replacement. The CHESS Replacement Solution Design team will continue to be led by Tim while he puts in place a new leadership team structure for the CHESS replacement program. As CIO, he will also have accountability for delivery of the technical aspects of the CHESS replacement program.”

Tim Whiteley joins ASX after previously holding positions at Westpac and Commonwealth Bank, leading large enterprise-wide technology transformation projects.

Dan Chesterman will continue as Group Executive, Technology and Data, responsible for maturing ASX’s enterprise data capability and growing ASX’s customer-facing Technology and Data business – ASX’s fastest growing business.

“I would like to thank Dan for his considerable efforts to manage what has effectively been two significant executive roles”, chief executive Lofthouse added.

Creation of CIO role not meant to influence delivery of ASX’s CHESS replacement

It was in March that ASX announced it would create a dedicated Technology division, splitting the Group Executive, Technology and Data, and CIO role. The move creatde a standalone enterprise technology division and CIO role, carving the responsibilities out of a formerly broader division and remit.

The exchange said the move is not intended to influence the delivery of ASX’s CHESS core replacement solution design, which will stay under the guidance of technology transformation project director Tim Whiteley.

ASX abandoned a blockchain-based CHESS core system replacement and has since acknowledged further transparency will be needed to regain stakeholder trust in the technology direction of the program.

It has since gone back to basics with its replacement strategy, under the watchful eye of the Reserve Bank of Australia and ASIC.

Incentives for integrating with the CHESS replacement

ASX has invited feedback from stakeholders on the proposed criteria ahead of making the first development incentive payment under the $70 million program, CHESS Replacement Partnership Program.

The Partnership Program is designed to recognise the important work that will be undertaken on a go-forward basis as ASX, together with industry, work together toward the successful progress and completion of the CHESS replacement project.

The purpose of the Partnership Program is to establish a framework to provide a financial contribution toward stakeholder participation with respect to the successful progress and completion of the CHESS replacement project. This includes any technological and other development activities necessary to successfully interface and interoperate with the CHESS replacement solution that ASX is developing.

The Partnership Program consists of two components:

• Participant Rebate Pool of $15 million, from which amounts will automatically be paid to clearing and settlement (C&S) participants, distributed proportionately based on C&S fees paid to ASX by those participants during the period of 1 January 2023 to 30 June 2023. The rebate is designed to provide support through a one-off fee reduction, and will be paid in August 2023.
• Development Incentive Pool of up to $55 million will be available to Program Participants that meet the eligibility criteria. An initial payment is expected to be made by 31 May 2023 (subject to feedback) with the balance tied to future program milestones, the timing of which will be known following the publication of a revised project plan that will come after completion of the solution redesign process.