Having completed detailed specification work by early-2003, ASX undertook further industry consultation to determine the extent of industry commitment before proceeding to the next phase. While potential clients remain interested in the opportunities presented by the proposed service, they do not feel able to commit to take up the service at present.
Recent developments overseas towards vertical integration in the funds management industry have also cast doubt over the immediate prospects of the project, persuading ASX that it could not commit significant funds towards further development while the future direction of the industry remained unclear.
As an interim measure, ASX has taken a decision to write off the capital expenditure to date on the initial design and development work, in particular the creation of specifications for the system. This will amount to $3.5 million after tax.
