ASX Exchange Eyeing 2020 for DLT Settlement Scheme
The Australian Securities Exchange (ASX) is close to the replacement of the CHESS clearing and settlement system which utilizes the distributed ledger-based alternative.
Therefore, the major details in regard to the progression of the system towards production launch were published in an 87-page consultant paper which was published on Friday. Therefore, the paper was composed of the timeline for the making of the switch and also the various descriptions of the function types which are to be supported and also those which won’t be supported.
ASX has a target of a rollout date which might be in the quarter of 2020 or 2021 first quarter. However, before the time, ASX through the consultation paper wants to be provided with the necessary feedback about the plans as they are today.
The firm explained in an opening report;
“Depending on the extent of consultation feedback received, ASX expects to provide a final functional scope and implementation roadmap in late July 2018.”
ASX has been making explorations on the use of the distributed ledger technology (DLT) from 2015. It made an announcement in December that it would be the first world stock exchange which would make use of the DLT especially for post-trade settlement by use of the technology which was jointly developed by Digital asset which is a Blockchain startup headed by the former JPMorgan Chase executive Blythe Masters. Therefore, ASX also has a stake in the digital asset.
The adoption of DLT by ASX is remarkable which comes at the end of the year’s period in research. While talking at the New York City synchronize conference this month, David Puth who is CLS group CEO said that the move by ASX was “going to establish standards on itself” by the provision of an example especially for enterprise Blockchain implementation in the entire industry.
Additionally, Peter Hiom who is the deputy CEO in ASX was on stage at the time and gave suggestions that the decision for launching the DLT based system would greatly help in the demystifying the technology for the industrial corporations.