Australian bourse operator ASX Ltd said on Monday it would proceed with a product-based solution delivered by TATA Consultancy Services to design and replace its trading, clearing and settlement system.

ASX said it would implement the new platform in two main releases, with the clearing service to be delivered in a first release, and the settlement and sub-register services in a second release.

The estimated cost for the first release of the Clearing House Electronic Subregister System (CHESS) project is between A$105 million ($68.33 million) and A$125 million, to be incurred over multiple years, ASX said.

ASX added the CHESS replacement project will move to the next phase of design and implementation, with further stakeholder consultation set to start in the first quarter of 2024.

The exchange operator has come under scrutiny in recent times, with Australia passing laws to encourage competition in post-trade settlement and clearing for financial markets since ASX abandoned a costly-rebuild of its CHESS platform last year.

($1 = 1.5366 Australian dollars)

(Reporting by Himanshi Akhand in Bengaluru; Editing by Chris Reese)