Customers Can Now Connect to ASX’s in-development blockchain-based equities clearing and settlement system
7 May, 2019
Thanks to the newly opened Customer Development Environment (CDE), the Australian Securities Exchange (ASX) is now letting clients connect to its in-development blockchain settlement system. The connection is made possible through a blockchain node and experiment with the technology. Once users get connected to the settlement system, they will be able to design, create and implement system changes. Also users will be able to access some of the new business functionality and also compare several access points.
According to Peter Hiom, deputy CEO at ASX;
“It represents the first time market participants anywhere in the world can experience the benefits of ‘taking a node’ and establishing direct connectivity to a golden source record of real-time data via distributed ledger technology.”
Apparently, the new equities clearing and settlement program is set to replace the Distributed Ledger Technology (DLT) based platform, CHESS. As stated by ASX’s Executive General Manager Equity Post-Trade Services, Cliff Richards;
“Delivering the development environment for customers on schedule is a major step forward in ASX’s CHESS replacement journey. “We are proud of this achievement and very grateful for the support of our partner Digital Asset and our customers. While we believe distributed ledger technology offers exciting opportunities for the whole market to innovate, there is much still to do. We continue to work closely with our customers as we progress towards delivery of the new system.”
How it Works
Clients can directly connect to the new system through a DLT node, which provides access to real-time synchronised, source-of-truth data. The innovation is designed to reduce costs and complexity, and facilitate new business opportunities for issuers, investors, intermediaries, as well as other users.
Reportedly, not all functionalities of the software code have been released to clients; the additional functionality is set to be released at an approximately eight-week interval until mid next year.
According to Yuval Rooz, Digital Asset Chief Executive:
“This is an important milestone for everyone involved in the CHESS replacement project, which continues to proceed according to the implementation timeline set by ASX. With the delivery of the CDE, ASX customers get their first glimpse of what the new CHESS system can provide.”
ASK plans to go live with the new DLT-based system in March-April 2021.