Whilst the functionality issues have largely been addressed, the technical issues which had been identified and were affecting the stability of connectivity to the system have not been addressed to SFE's satisfaction and require additional work. A review of the issues was commissioned by SFE and carried out by independent consultants. This review has caused SFE to seek additional comfort in respect of OMX’s ability to support the application and environment in production. SFE requires that OMX delivers a robust and stable market platform to the highest operational standards.
The timeframe for the satisfactory resolution of all outstanding technical issues is provisionally estimated to be at least three months. Thereafter SFE will advise market participants of the commencement date for industry-wide testing activities and provide a revised indication of the likely date of “go-live”.
Pending the finalisation of commercial discussions between SFE and OMX regarding the Austraclear system replacement project, SFE believes that the delay will not give rise to any impairment of the ultimate carrying value of the project. The impact of this delay on SFE’s profitability will be substantially limited to the depreciation charge from the date of go-live. The effect of the delay on the depreciation charge, while not able to be estimated with any precision at this time, is not expected to be material to SFE’s profitability.
